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Constrained optimal transport with an application to large markets with indivisible goods

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  • Koji Yokote

Abstract

We establish a variant of Monge--Kantorovich duality for a constrained optimal transport problem with a continuum of agents, a finite set of alternatives, and general linear constraints. As an application, we revisit the large-market model of indivisible goods in Azevedo et al. (2013), identify a flaw in the original equilibrium-existence proof stemming from an incorrect compactness claim, and recover equilibrium existence via our duality approach. We also characterize equilibrium prices as minimizers of a potential function, which yields a method for computing equilibrium prices.

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  • Koji Yokote, 2026. "Constrained optimal transport with an application to large markets with indivisible goods," Papers 2604.02559, arXiv.org.
    • Handle: RePEc:arx:papers:2604.02559
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    References listed on IDEAS

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