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A continuum model as a limit of large finite matching markets

Author

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  • Grigoryan, Aram

    (University of California, San Diego)

Abstract

The continuum matching model has been instrumental in the studies of finite economies. Yet, there is limited theoretical justification on whether and when a continuum model approximates large finite problems. In this paper I study the following question: if we randomly sample finite economies from some distribution, will the stable assignments of these finite economies converge to a stable assignment of the continuum economy as we increase the sample size? I provide a simple condition, which I call rich preferences, that guarantees the convergence. I also provide approximate convergence results under weaker conditions.

Suggested Citation

  • Grigoryan, Aram, 0. "A continuum model as a limit of large finite matching markets," Theoretical Economics, Econometric Society.
    • Handle: RePEc:the:publsh:5478
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    References listed on IDEAS

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    1. Yeon-Koo Che & Dong Woo Hahm & YingHua He, 2023. "Leveraging Uncertainties to Infer Preferences: Robust Analysis of School Choice," Papers 2309.14297, arXiv.org.
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    Keywords

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    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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