Matching in the Kolm Triangle: Interiority and Participation Constraints of Matching Equilibria

23 Pages Posted: 15 Jul 2019

See all articles by Wolfgang Buchholz

Wolfgang Buchholz

Universitaet Regensburg; CESifo (Center for Economic Studies and Ifo Institute)

Richard C. Cornes

Australian National University (ANU) - Faculty of Economics & Commerce; CESifo (Center for Economic Studies and Ifo Institute)

Dirk T. G. Rübbelke

Technische Universität Bergakademie Freiberg

Date Written: July 10, 2019

Abstract

In this paper we show how the Kolm triangle method, which is a standard tool for visualizing allocations in a public good economy, can also be used to provide a diagrammatical exposition of matching mechanisms and their effects on public good supply and welfare. In particular, we describe, on the one hand, for which income distributions interior matching equilibria result and, on the other hand, for which income distributions the agents voluntarily participate in a matching mechanism. As a novel result, we especially show that the “participation zone” is larger than the “interiority zone”.

Keywords: Public Goods, Matching, Pareto Optimality, Kolm Triangle, Aggregative Games

JEL Classification: C78, H41

Suggested Citation

Buchholz, Wolfgang and Cornes, Richard C. and Rübbelke, Dirk T. G., Matching in the Kolm Triangle: Interiority and Participation Constraints of Matching Equilibria (July 10, 2019). FEEM Working Paper No. 12.2019. Available at SSRN: https://ssrn.com/abstract=3417595 or http://dx.doi.org/10.2139/ssrn.3417595

Wolfgang Buchholz

Universitaet Regensburg ( email )

D-93040 Regensburg, 93053
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Richard C. Cornes

Australian National University (ANU) - Faculty of Economics & Commerce ( email )

Canberra, Australian Capital Territory 2601
Australia

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Dirk T. G. Rübbelke (Contact Author)

Technische Universität Bergakademie Freiberg ( email )

Freiberg, 09599
Germany

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