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}
}