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Aggregation in Matching Markets

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Abstract

This paper develops aggregate relations for a matching market of heterogeneous suppliers and demanders. The point of departure is the analysis of two-sided matching found in Roth and Sotomayor (1990). Under particular assumptions about the distribution of preferences, the present paper derives asymptotic aggregate relations for the number of realized matches of different types in the presence of flexible contracts (such as a price). Simulation experiments demonstrate that the model also provides excellent predictions in small populations.

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  • John K. Dagsvik, 1996. "Aggregation in Matching Markets," Discussion Papers 173, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:173
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    Keywords

    two-sided matching models; discrete choice; market equilibrium; marriage models; the Golden Section.;

    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

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