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Generalized coarse matching

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  • Shao, Ran

Abstract

This paper analyzes the problem of matching two heterogeneous populations, such as men and women. If the payoff from a match exhibits complementarities, it is well known that, absent any friction, positive assortative matching is optimal. Coarse matching refers to a situation in which the populations are sorted into a finite number of classes and then randomly matched within these classes. We derive upper bounds on the fraction of the total efficiency loss of n-class coarse matching, which is proportional to 1/n2. Our result substantially enlarges the scope of matching problems in which the performance of coarse matching can be assessed.

Suggested Citation

  • Shao, Ran, 2016. "Generalized coarse matching," Games and Economic Behavior, Elsevier, vol. 100(C), pages 142-148.
    • Handle: RePEc:eee:gamebe:v:100:y:2016:i:c:p:142-148
    DOI: 10.1016/j.geb.2016.09.008
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    References listed on IDEAS

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    More about this item

    Keywords

    Coarse matching; Grüss's inequality; Assortative matching;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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