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Commitment and matching in the marriage market

Author

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  • Berliant, Marcus
  • Thakur, Sounak

Abstract

The set of stable marriage matches is different depending on whether allocation within marriage is determined by binding agreements in the marriage market (BAMM) or by bargaining in marriage (BIM). With transferable utility, any stable matching is utilitarian efficient under BAMM, but not under BIM. Is it possible to implement the efficient matching under BIM? We show that if one side of the market is sufficiently sensitive relative to the other, if the more sensitive side can be ranked by sensitivity, and if their preferences are hierarchical, the top trading cycles algorithm results in an efficient matching.

Suggested Citation

  • Berliant, Marcus & Thakur, Sounak, 2019. "Commitment and matching in the marriage market," MPRA Paper 96001, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96001
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D1 - Microeconomics - - Household Behavior
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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