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A Graph Theoretic Approach to Markets for Indivisible Goods

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  • Andrew Caplin
  • John V. Leahy

Abstract

Many important markets, such as the housing market, involve goods that are both indivisible and of budgetary significance. We introduce new graph theoretic techniques ideally suited to analyzing such markets. In this paper and its companion (Caplin and Leahy [2010]), we use these techniques to fully characterize the comparative static properties of these markets and to identify algorithms for computing equilibria.

Suggested Citation

  • Andrew Caplin & John V. Leahy, 2010. "A Graph Theoretic Approach to Markets for Indivisible Goods," NBER Working Papers 16284, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:16284
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    1. Caplin, Andrew & Leahy, John, 2020. "Comparative statics in markets for indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 90(C), pages 80-94.
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    Cited by:

    1. Piazzesi, M. & Schneider, M., 2016. "Housing and Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1547-1640, Elsevier.
    2. Geng, Runjie & Kubler, Felix, 2023. "Stochastic overlapping generations with non-convex budget sets," Journal of Mathematical Economics, Elsevier, vol. 107(C).
    3. Caplin, Andrew & Leahy, John, 2020. "Comparative statics in markets for indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 90(C), pages 80-94.
    4. Yu Zhou & Shigehiro Serizawa, 2020. "Serial Vickrey Mechanism," ISER Discussion Paper 1095, Institute of Social and Economic Research, Osaka University.
    5. Tim Landvoigt & Monika Piazzesi & Martin Schneider, 2015. "The Housing Market(s) of San Diego," American Economic Review, American Economic Association, vol. 105(4), pages 1371-1407, April.
    6. Määttänen, Niku & Terviö, Marko, 2014. "Income distribution and housing prices: An assignment model approach," Journal of Economic Theory, Elsevier, vol. 151(C), pages 381-410.
    7. Saeed Alaei & Kamal Jain & Azarakhsh Malekian, 2016. "Competitive Equilibria in Two-Sided Matching Markets with General Utility Functions," Operations Research, INFORMS, vol. 64(3), pages 638-645, June.
    8. Yu Zhou & Shigehiro Serizawa, 2019. "Minimum price equilibrium in the assignment market," ISER Discussion Paper 1047, Institute of Social and Economic Research, Osaka University.

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    More about this item

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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