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Matching in the Kolm Triangle: Interiority and Participation Constraints of Matching Equilibria

Author

Listed:
  • Wolfgang Buchholz

    (University of Regensburg and CESifo Munich)

  • Richard Cornes

    (Australian National University)

  • Dirk Rübbelke

    (Technische Universität Bergakademie Freiberg)

Abstract

In this paper we show how the Kolm triangle method, which is a standard tool for visualizing allocations in a public good economy, can also be used to provide a diagrammatical exposition of matching mechanisms and their effects on public good supply and welfare. In particular, we describe, on the one hand, for which income distributions interior matching equilibria result and, on the other hand, for which income distributions the agents voluntarily participate in a matching mechanism. As a novel result, we especially show that the “participation zone” is larger than the “interiority zone”.

Suggested Citation

  • Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2019. "Matching in the Kolm Triangle: Interiority and Participation Constraints of Matching Equilibria," Working Papers 2019.12, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2019.12
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public Goods; Matching; Pareto Optimality; Kolm Triangle; Aggregative Games;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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