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Multidimensional matching

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  • Pierre-Andr'e Chiappori
  • Robert McCann
  • Brendan Pass

Abstract

We present a general analysis of multidimensional matching problems with transferable utility, paying particular attention to the case in which the dimensions of heterogeneity on the two sides of the market are unequal. A particular emphasis is put on problems where agents on one side of the market are multidimensional and agents on the other side are uni-dimensional, we describe a general approach to solve such problems. Lastly, we analyze several examples, including an hedonic model with differentiated products, a marriage market model where wives are differentiated in income and fertility, and a competitive variation of the Rochet-Chon\'e problem. In the latter example, we show that the bunching phenomena, observed by Rochet and Chon\'e in the monopoly context, do not occur in the competitive context

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  • Pierre-Andr'e Chiappori & Robert McCann & Brendan Pass, 2016. "Multidimensional matching," Papers 1604.05771, arXiv.org.
    • Handle: RePEc:arx:papers:1604.05771
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    4. Chang, Briana & Hong, Harrison, 2019. "Selection versus talent effects on firm value," Journal of Financial Economics, Elsevier, vol. 133(3), pages 751-763.
    5. Briana Chang & Harrison Hong, 2017. "Assignment of Stock Market Coverage," NBER Working Papers 23115, National Bureau of Economic Research, Inc.
    6. Veli Safak, 2020. "Matching Multidimensional Types: Theory and Application," Papers 2006.14243, arXiv.org.

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