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A graph theoretic approach to markets for indivisible goods

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  • Caplin, Andrew
  • Leahy, John

Abstract

Many important markets, such as the labor market and the housing market, involve goods that are both indivisible and of budgetary significance. We introduce new graph theoretic objects ideally suited to analyzing such markets. We show that the minimum equilibrium price is characterized by a certain optimization problem on these graph theoretic objects.

Suggested Citation

  • Caplin, Andrew & Leahy, John, 2014. "A graph theoretic approach to markets for indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 52(C), pages 112-122.
  • Handle: RePEc:eee:mateco:v:52:y:2014:i:c:p:112-122
    DOI: 10.1016/j.jmateco.2014.03.011
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Piazzesi, M. & Schneider, M., 2016. "Housing and Macroeconomics," Handbook of Macroeconomics, Elsevier.
    2. Määttänen, Niku & Terviö, Marko, 2014. "Income distribution and housing prices: An assignment model approach," Journal of Economic Theory, Elsevier, vol. 151(C), pages 381-410.
    3. Tim Landvoigt & Monika Piazzesi & Martin Schneider, 2015. "The Housing Market(s) of San Diego," American Economic Review, American Economic Association, vol. 105(4), pages 1371-1407, April.

    More about this item

    Keywords

    Indivisibilities; Competitive equilibrium; NTU; Graph theory;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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