The matching problem with linear transfers is equivalent to a hide-and-seek game
Theoretical Economics
2025-12-02 v2
Abstract
Matching problems with linearly transferable utility (LTU) generalize the well-studied transferable utility (TU) case by relaxing the assumption that utility is transferred one-for-one within matched pairs. We show that LTU matching problems can be reframed as nonzero-sum games between two players, thus generalizing a result from von Neumann. The underlying linear programming structure of TU matching problems, however, is lost when moving to LTU. These results draw a new bridge between non-TU matching problems and the theory of bimatrix games, with consequences notably regarding the computation of stable outcomes.
Cite
@article{arxiv.2402.12200,
title = {The matching problem with linear transfers is equivalent to a hide-and-seek game},
author = {Alfred Galichon and Antoine Jacquet},
journal= {arXiv preprint arXiv:2402.12200},
year = {2025}
}