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Beauty is a Beast, Frog is a Prince: Assortative Matching with Nontransferabilities

Author

Listed:
  • Patrick Legros

    (ECARES, Universite Libre de Bruxelles)

  • Andrew F. Newman

    () (Institute for Economic Development, Boston University)

Abstract

We present sufficient conditions for monotone matching in environments where utility is not fully transferable between partners. These conditions involve complementarity in types not only of the total payoff to a match, as in the transferable utility case, but also in the degree of transferability between partners. We apply our conditions to study some models of risk sharing and incentive problems, deriving new results for predicted matching patterns in those contexts

Suggested Citation

  • Patrick Legros & Andrew F. Newman, 2002. "Beauty is a Beast, Frog is a Prince: Assortative Matching with Nontransferabilities," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-149, Boston University - Department of Economics, revised Nov 2004.
  • Handle: RePEc:bos:iedwpr:dp-149
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    File URL: http://www.bu.edu/econ/ied/dp/papers/dp149Newman.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Assortative matching; nontransferable utility; risk sharing; interhousehold allocation.;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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