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

• Tác giả: Esben Scrivers Andersen
• Ngôn ngữ: eng
• Ký hiệu phân loại: 010.1 Bibliography
• Thông tin xuất bản: 2024
• Bộ sưu tập: Metadata
• ID: 204065

Tóm tắt

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.