Ordinal and Cardinal Solution Concepts for Two-Sided Matching
29 Pages Posted: 6 Apr 2013 Last revised: 25 Jul 2014
Date Written: April 23, 2014
We characterize solutions for two-sided matching, both in the transferable - and in the nontransferable - utility frameworks, using a cardinal formulation. Our approach makes the comparison of the matching models with and without transfers particularly transparent. We introduce the concept of a no-trade matching to study the role of transfers in matching. A no-trade matching is one in which the availability of transfers do not affect the outcome.
Keywords: matching, stability, efficiency
JEL Classification: C78
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