Download This PaperComplementarity in Matching Markets and Exchange Economies
39 Pages Posted: 27 Apr 2020 Last revised: 29 Nov 2024
There are 2 versions of this paper
Complementarity in Matching Markets and Exchange Economies
Complementarity in Matching, Games, and Exchange Economies
Date Written: November 07, 2024
Abstract
The literature has shown that complementarity places significant structure on outcomes in matching markets and exchange economies. We examine the extent to which this structure, and the economic intuition underlying it, is common across these classes of environments. We show that transferable utility matching markets can be represented as exchange economies in a way that preserves competitive equilibria and gross complementarity. Unlike canonical representations that preserve substitutability, this representation must involve the addition of brokers whenever the matching market is not two-sided. We use our representation results to uncover the relationship (or lack thereof) between existence results in the literature that rely on complementarity, and to give a new existence result for matching markets with imperfectly transferable utility and net complementarity.
Keywords: Complementarities, Matching with Contracts, Stability
JEL Classification: D47, D51, C72, C78
Suggested Citation: Suggested Citation