Regularity properties of optimal transportation problems arising in hedonic pricing models
Analysis of PDEs
2011-10-14 v1
Abstract
We study a form of optimal transportation surplus functions which arise in hedonic pricing models. We derive a formula for the Ma-Trudinger-Wang curvature of these functions, yielding necessary and sufficient conditions for them to satisfy \textbf{(A3w)}. We use this to give explicit new examples of surplus functions satisfying \textbf{(A3w)}, of the form where is a convex function on . We also show that the space of equilibrium contracts in the hedonic pricing model has the maximal possible dimension, a result of potential economic interest.
Keywords
Cite
@article{arxiv.1110.2790,
title = {Regularity properties of optimal transportation problems arising in hedonic pricing models},
author = {Brendan Pass},
journal= {arXiv preprint arXiv:1110.2790},
year = {2011}
}