DP3469 Assortative Matching in a Non-transferable World

Author(s): Patrick Legros, Andrew Newman
Publication Date: July 2002
Keyword(s): assortative matching, contract theory, principal agent
JEL(s): D51, I22, J41
Programme Areas: Industrial Organization
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=3469

Progress in the application of matching models to environments in which the utility between matching partners is not fully transferable has been hindered by a lack of characterization results analogous to those that are known for transferable utility. We present sufficient conditions for matching to be monotone that are simple to express and easy to verify. We illustrate their application with some examples that are of independent interest.