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Multidimensional matching

We present a general analysis of multidimensional matching problems with transferable utility, paying particular attention to the case in which the dimensions of heterogeneity on the two sides of the market are unequal. A particular emphasis is put on problems where agents on one side of the market are multidimensional and agents on the other side are uni-dimensional, we describe a general approach to solve such problems. Lastly, we analyze several examples, including an hedonic model with differentiated products, a marriage market model where wives are differentiated in income and fertility, and a competitive variation of the Rochet-Choné problem. In the latter example, we show that the bunching phenomena, observed by Rochet and Choné in the monopoly context, do not occur in the competitive context

preprint2016arXivOpen access
Pierre-André ChiapporiRobert McCannBrendan Pass
math.APmath.OCq-fin.EC
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Pierre-André ChiapporiRobert McCannBrendan Pass

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