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
Suggested Citation: Suggested Citation
Echenique, Federico and Galichon, Alfred, Ordinal and Cardinal Solution Concepts for Two-Sided Matching (April 23, 2014). Available at SSRN: https://ssrn.com/abstract=2246031 or http://dx.doi.org/10.2139/ssrn.2246031