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Matching and Sorting with Horizontal Heterogeneity

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  • Simon Clark

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Abstract

This paper examine a class of two-sided matching problems with non-transferable utility. Agents are horizontally differentiated, and each would prefer to be matched with a similar partner; in short, "like attracts like". Although such preferences imply a unique stable matching, the degree of assortment in equilibrium is found to depend critically on the distribution of characteristics among the two sexes. In particular, the greater the difference between men and women, the greater the tendency to negative assortment. Constraints on who can match with whom may improve welfare and we interpret this as a theory of social stratification.

Suggested Citation

  • Simon Clark, 2003. "Matching and Sorting with Horizontal Heterogeneity," ESE Discussion Papers 94, Edinburgh School of Economics, University of Edinburgh.
  • Handle: RePEc:edn:esedps:94
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    File URL: http://www.econ.ed.ac.uk/papers/id94_esedps.pdf
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    References listed on IDEAS

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    1. Patrick Legros & Andrew F. Newman, 2007. "Beauty Is a Beast, Frog Is a Prince: Assortative Matching with Nontransferabilities," Econometrica, Econometric Society, vol. 75(4), pages 1073-1102, July.
    2. Durlauf, S.N., 1996. "Associational Redistribution: A Defense," Working papers 9613, Wisconsin Madison - Social Systems.
    3. Kiyotaki, Nobuhiro & Wright, Randall, 1989. "On Money as a Medium of Exchange," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 927-954, August.
    4. Burdett, Kenneth & Coles, Melvyn G, 1999. "Long-Term Partnership Formation: Marriage and Employment," Economic Journal, Royal Economic Society, vol. 109(456), pages 307-334, June.
    5. Simon Clark, 2002. "Uniqueness of Equilibrium in Two-sided Matching," ESE Discussion Papers 84, Edinburgh School of Economics, University of Edinburgh.
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    Cited by:

    1. Klumpp, Tilman, 2009. "Two-sided matching with spatially differentiated agents," Journal of Mathematical Economics, Elsevier, vol. 45(5-6), pages 376-390, May.
    2. Flanders, Sam, 2014. "Matching Markets with N-Dimensional Preferences," MPRA Paper 53669, University Library of Munich, Germany.
    3. Flanders, Sam, 2013. "Continuous Matching with Single Peaked Preferences," MPRA Paper 53668, University Library of Munich, Germany.

    More about this item

    Keywords

    matching; sorting; uniqueness; horizontal heterogeneity; marriage market; social stratification;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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