Note on solving one-to-one matching models with linear transferable utility

Esben Scrivers Andersen

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arXiv · 2409.05518

Note on solving one-to-one matching models with linear transferable utility

Esben Scrivers Andersen

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Abstract

We derive a system of fixed-point equations for the equilibrium transfers in a class of one-to-one matching models with linear transferable utility. We then show that, when the degree of substitution between alternatives is bounded from above, the derived system of equations constitutes a contraction mapping. As a result, fixed-point iterations are guaranteed to converge to the unique distribution of equilibrium transfers.

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Esben Scrivers Andersen. 2024-09-09. Note on solving one-to-one matching models with linear transferable utility. https://arxiv.org/abs/2409.05518

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