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A Theoretical Foundation for Bilateral Matching Mechanisms

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  • Aliprantis, C.D.
  • Camera, G.
  • Puzzello, D.

Abstract

This work introduces a rigorous set-theoretic foundation of bilateral matching mechanisms and studies their properties in a systematic manner. By providing a unified framework to study bilateral matching mechanisms, we formalize how different spatial/informational constraints can be implemented via a careful selection of matching mechanisms. In particular, this paper explains why and how various matching mechanisms generate different degrees of information isolation in the economy.

Suggested Citation

  • Aliprantis, C.D. & Camera, G. & Puzzello, D., 2003. "A Theoretical Foundation for Bilateral Matching Mechanisms," Purdue University Economics Working Papers 1165, Purdue University, Department of Economics.
    • Handle: RePEc:pur:prukra:1165
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    References listed on IDEAS

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    Cited by:

    1. Aliprantis, C.D. & Camera, G. & Puzzello, D., 2007. "A random matching theory," Games and Economic Behavior, Elsevier, vol. 59(1), pages 1-16, April.

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    More about this item

    Keywords

    Bilateral matching ; Frictions ; Anonymous trading ; Spatial interactions;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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