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Stable matching as transportation

Author

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  • Federico Echenique
  • Joseph Root
  • Fedor Sandomirskiy

Abstract

We study matching markets with aligned preferences and establish a connection between common design objectives -- stability, efficiency, and fairness -- and the theory of optimal transport. Optimal transport gives new insights into the structural properties of matchings obtained from pursuing these objectives, and into the trade-offs between different objectives. Matching markets with aligned preferences provide a tractable stylized model capturing supply-demand imbalances in a range of settings such as partnership formation, school choice, organ donor exchange, and markets with transferable utility where bargaining over transfers happens after a match is formed.

Suggested Citation

  • Federico Echenique & Joseph Root & Fedor Sandomirskiy, 2024. "Stable matching as transportation," Papers 2402.13378, arXiv.org.
    • Handle: RePEc:arx:papers:2402.13378
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    References listed on IDEAS

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