Ordinal and cardinal solution concepts for two-sided matching

Federico Echenique (1) , Alfred Galichon (2)

1 CALTECH - California Institute of Technology
2 ECON - Département d'économie (Sciences Po)

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

Domains: Economics and Finance

Federico Echenique, Alfred Galichon. Ordinal and cardinal solution concepts for two-sided matching. 2014. ⟨hal-03460323⟩