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A graph theoretic approach to markets for indivisible goods

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  • Caplin, Andrew
  • Leahy, John

Abstract

Many important markets, such as the labor market and the housing market, involve goods that are both indivisible and of budgetary significance. We introduce new graph theoretic objects ideally suited to analyzing such markets. We show that the minimum equilibrium price is characterized by a certain optimization problem on these graph theoretic objects.

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  • Caplin, Andrew & Leahy, John, 2014. "A graph theoretic approach to markets for indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 52(C), pages 112-122.
    • Handle: RePEc:eee:mateco:v:52:y:2014:i:c:p:112-122
    DOI: 10.1016/j.jmateco.2014.03.011
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    1. Caplin, Andrew & Leahy, John, 2020. "Comparative statics in markets for indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 90(C), pages 80-94.
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    Cited by:

    1. Caplin, Andrew & Leahy, John, 2020. "Comparative statics in markets for indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 90(C), pages 80-94.
    2. Yu Zhou & Shigehiro Serizawa, 2020. "Serial Vickrey Mechanism," ISER Discussion Paper 1095, Institute of Social and Economic Research, Osaka University.
    3. Solymosi, Tamás, 2023. "Sensitivity of fair prices in assignment markets," Mathematical Social Sciences, Elsevier, vol. 126(C), pages 1-12.
    4. Piazzesi, M. & Schneider, M., 2016. "Housing and Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1547-1640, Elsevier.
    5. Määttänen, Niku & Terviö, Marko, 2014. "Income distribution and housing prices: An assignment model approach," Journal of Economic Theory, Elsevier, vol. 151(C), pages 381-410.
    6. Tim Landvoigt & Monika Piazzesi & Martin Schneider, 2015. "The Housing Market(s) of San Diego," American Economic Review, American Economic Association, vol. 105(4), pages 1371-1407, April.
    7. Saeed Alaei & Kamal Jain & Azarakhsh Malekian, 2016. "Competitive Equilibria in Two-Sided Matching Markets with General Utility Functions," Operations Research, INFORMS, vol. 64(3), pages 638-645, June.
    8. Yu Zhou & Shigehiro Serizawa, 2019. "Minimum price equilibrium in the assignment market," ISER Discussion Paper 1047, Institute of Social and Economic Research, Osaka University.
    9. Geng, Runjie & Kubler, Felix, 2023. "Stochastic overlapping generations with non-convex budget sets," Journal of Mathematical Economics, Elsevier, vol. 107(C).

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    More about this item

    Keywords

    Indivisibilities; Competitive equilibrium; NTU; Graph theory;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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