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Note on solving one-to-one matching models with linear transferable utility

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  • Esben Scrivers Andersen

Abstract

We derive a system of fixed-point equations for the equilibrium transfers in a class of one-to-one matching models with linear transferable utility. We then show that, when the degree of substitution between alternatives is bounded from above, the derived system of equations constitutes a contraction mapping. As a result, fixed-point iterations are guaranteed to converge to the unique distribution of equilibrium transfers.

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  • Esben Scrivers Andersen, 2024. "Note on solving one-to-one matching models with linear transferable utility," Papers 2409.05518, arXiv.org, revised Dec 2024.
    • Handle: RePEc:arx:papers:2409.05518
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    References listed on IDEAS

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    12. repec:hal:spmain:info:hdl:2441/361levbcs399s9oa154em6h9jl is not listed on IDEAS
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