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Status-Seeking In Coalitional Matching Problems

Author

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  • Emiliya Lazarova
  • Dinko Dimitrov

Abstract

We study group formation where agents’ preferences over group memberships are defined on the identity of the other agents in the same group. We define identity to be two-dimensional: on the one-hand, it is determined by the agent’s type, e.g., her race, nationality, ethnic background; on the other hand, it is determined by the agent’s quality, e.g., her skill level or material endowment. Specifically, we consider two types of agents and view group formation as a coalitional two-sided matching problem where agents of each type may form coalitions which can be matched to each other. Agents’ preferences are dictated by status-seeking. Status can be either local or global. In this setting, we consider four specific preference domains, show that on all of them core stable coalitional matchings always exist, and fully characterize the corresponding cores.

Suggested Citation

  • Emiliya Lazarova & Dinko Dimitrov, 2010. "Status-Seeking In Coalitional Matching Problems," Economics Working Papers 10-02, Queen's Management School, Queen's University Belfast.
    • Handle: RePEc:qub:wpaper:1002
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    References listed on IDEAS

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    More about this item

    Keywords

    Coalitions; Core; Stability; Two-sided matchings;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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