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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…

Analysis of PDEs · Mathematics 2011-10-14 Brendan Pass

This paper links matching markets with aligned preferences to optimal transport theory. We show that stability, efficiency, and fairness emerge as solutions to a parametric family of optimal transport problems. The parameter reflects…

Theoretical Economics · Economics 2025-03-17 Federico Echenique , Joseph Root , Fedor Sandomirskiy

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…

Economics · Quantitative Finance 2016-04-21 Pierre-André Chiappori , Robert McCann , Brendan Pass

This paper studies a matching problem in which a group of agents cooperate with agents on two sides. In environments with either nontransferable or transferable utilities, we demonstrate that a stable outcome exists when cooperations…

Theoretical Economics · Economics 2025-09-16 Chao Huang

We study a class of semi-discrete variational problems that arise in economic matching and game theory, where agents with continuous attributes are matched to a finite set of outcomes with a one dimensional structure. Such problems appear…

Optimization and Control · Mathematics 2025-08-14 Omar Abdul Halim , Daniyar Omarov , Brendan Pass

Over the past five years, multi-marginal optimal transport, a generalization of the well known optimal transport problem of Monge and Kantorovich, has begun to attract considerable attention, due in part to a wide variety of emerging…

Analysis of PDEs · Mathematics 2014-09-12 Brendan Pass

We pursue robust approach to pricing and hedging in mathematical finance. We consider a continuous time setting in which some underlying assets and options, with continuous paths, are available for dynamic trading and a further set of…

Mathematical Finance · Quantitative Finance 2015-07-07 Zhaoxu Hou , Jan Obloj

This paper is devoted to variational problems on the set of probability measures which involve optimal transport between unequal dimensional spaces. In particular, we study the minimization of a functional consisting of the sum of a term…

Analysis of PDEs · Mathematics 2019-11-18 Luca Nenna , Brendan Pass

This article presents a set of tools for the modeling of a spatial allocation problem in a large geographic market and gives examples of applications. In our settings, the market is described by a network that maps the cost of travel…

General Economics · Economics 2019-08-26 Arthur Charpentier , Alfred Galichon , Lucas Vernet

In this paper, we study a variant of hedonic games, called \textsc{Seat Arrangement}. The model is defined by a bijection from agents with preferences for each other to vertices in a graph $G$. The utility of an agent depends on the…

Computer Science and Game Theory · Computer Science 2025-07-30 Hans L. Bodlaender , Tesshu Hanaka , Lars Jaffke , Hirotaka Ono , Yota Otachi , Tom C. van der Zanden

We investigate in this paper the theory and econometrics of optimal matchings with competing criteria. The surplus from a marriage match, for instance, may depend both on the incomes and on the educations of the partners, as well as on…

General Economics · Economics 2021-02-26 Alfred Galichon , Bernard Salanié

We consider the martingale optimal transport duality for c\`adl\`ag processes with given initial and terminal laws. Strong duality and existence of dual optimizers (robust semi-static superhedging strategies) are proved for a class of…

Probability · Mathematics 2019-04-10 Sebastian Herrmann , Florian Stebegg

Cross-group externalities and network effects in two-sided platform markets shape market structure and competition policy, and are the subject of extensive study. Less understood are the within-group externalities that arise when the…

Theoretical Economics · Economics 2020-11-10 Quitzé Valenzuela-Stookey

We study multi-marginal optimal transport problems from a probabilistic graphical model perspective. We point out an elegant connection between the two when the underlying cost for optimal transport allows a graph structure. In particular,…

Optimization and Control · Mathematics 2020-06-26 Isabel Haasler , Rahul Singh , Qinsheng Zhang , Johan Karlsson , Yongxin Chen

We consider an optimization problem in a given region $Q$ where an agent has to decide the price $p(x)$ of a product for every $x\in Q$. The customers know the pricing pattern $p$ and may shop at any place $y$, paying the cost $p(y)$ and…

Optimization and Control · Mathematics 2013-12-24 Giuseppe Buttazzo , Guillaume Carlier

We investigate duality and existence of dual optimizers for several adapted optimal transport problems under minimal assumptions. This includes the causal and bicausal transport, the causal and bicausal barycenter problem, and a…

Probability · Mathematics 2024-11-20 Daniel Kršek , Gudmund Pammer

We study uncoordinated matching markets with additional local constraints that capture, e.g., restricted information, visibility, or externalities in markets. Each agent is a node in a fixed matching network and strives to be matched to…

Computer Science and Game Theory · Computer Science 2014-09-16 Martin Hoefer , Lisa Wagner

We introduce an extension of the Optimal Transport problem when multiple costs are involved. Considering each cost as an agent, we aim to share equally between agents the work of transporting one distribution to another. To do so, we…

Machine Learning · Statistics 2021-02-26 Meyer Scetbon , Laurent Meunier , Jamal Atif , Marco Cuturi

We consider the problem of optimal exchange which can be formulated as a kind of optimal transportation problem. The existence of an optimal solution and a duality theorem for the optimal exchange problem are proved in case of completely…

Functional Analysis · Mathematics 2024-12-10 Alexander Kolesnikov , Svetlana Popova

Many-to-many matching with contracts is studied in the framework of revealed preferences. All preferences are described by choice functions that satisfy natural conditions. Under a no-externality assumption individual preferences can be…

Computer Science and Game Theory · Computer Science 2020-03-05 Daniel Lehmann
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