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Ordinal and cardinal solution concepts for two-sided matching

Author

Listed:
  • Federico Echenique

    (California Institute of Technology (Caltech))

  • Alfred Galichon

    (Département d'économie (ECON))

Abstract

We characterize solutions for two-sided matching, both in the transferable - and in the nontransferable - utility frameworks, using a cardinal formulation. Our approach makes the comparison of the matching models with and without transfers particularly transparent. We introduce the concept of a no-trade matching to study the role of transfers in matching. A no-trade matching is one in which the availability of transfers do not affect the outcome.

Suggested Citation

  • Federico Echenique & Alfred Galichon, 2014. "Ordinal and cardinal solution concepts for two-sided matching," Sciences Po publications info:hdl:2441/5k6c74nfqf9, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/5k6c74nfqf91aa74v72q2ca5tm
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    References listed on IDEAS

    as
    1. Hatfield, John William & Kojima, Fuhito, 2010. "Substitutes and stability for matching with contracts," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1704-1723, September.
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    7. Roth, Alvin E, 1984. "Stability and Polarization of Interests in Job Matching," Econometrica, Econometric Society, vol. 52(1), pages 47-57, January.
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    14. Crawford, Vincent P., 2005. "The Flexible-Salary Match: A Proposal to Increase the Salary Flexibility of the National Resident Matching Program," University of California at San Diego, Economics Working Paper Series qt2gw114b2, Department of Economics, UC San Diego.
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    Cited by:

    1. Doğan, Battal & Yıldız, Kemal, 2016. "Efficiency and stability of probabilistic assignments in marriage problems," Games and Economic Behavior, Elsevier, vol. 95(C), pages 47-58.

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    More about this item

    Keywords

    Matching; Stability; Efficiency;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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