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

General Economics 2025-07-09 v3 Economics

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.

Keywords

Cite

@article{arxiv.2409.05518,
  title  = {Note on solving one-to-one matching models with linear transferable utility},
  author = {Esben Scrivers Andersen},
  journal= {arXiv preprint arXiv:2409.05518},
  year   = {2025}
}
R2 v1 2026-06-28T18:38:22.649Z