Hierarchical Assignments: Stability and Fairness
AbstractWe study a simple model of the job market, where workers are assigned to employers. We specify conditions under which the market is hierarchical in a natural sense. For such hierarchies, we can state explicit values for the earnings in the worker-optimal and employer-optimal solutions. This is a discrete analogue to the Ricardian differential rent model of Sattinger (1979). We discuss the compatibility problems between fairness and stability of earnings and assignments and argue for a certain solution.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 201.
Length: 15 pages
Date of creation: 27 Oct 1997
Date of revision:
Publication status: Published in Mathematical Social Sciences, 2000, pages 109-118.
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More information through EDIRC
Hierarchies; assignment; fairness; envy;
Other versions of this item:
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
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