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Beauty Is a Beast, Frog Is a Prince: Assortative Matching with Nontransferabilities

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  • Patrick Legros
  • Andrew F. Newman

Abstract

We present sufficient conditions for monotone matching in environments where utility is not fully transferable between partners. These conditions involve not only complementarity in types of the total payoff to a match, as in the transferable utility case, but also monotonicity in type of the degree of transferability between partners. We apply our conditions to study some models of risk sharing and incentive problems, deriving new results for predicted matching patterns in those contexts. Copyright The Econometric Society 2007.

Suggested Citation

  • Patrick Legros & Andrew F. Newman, 2007. "Beauty Is a Beast, Frog Is a Prince: Assortative Matching with Nontransferabilities," Econometrica, Econometric Society, vol. 75(4), pages 1073-1102, July.
    • Handle: RePEc:ecm:emetrp:v:75:y:2007:i:4:p:1073-1102
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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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