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Economics > Theoretical Economics

Title: The matching problem with linear transfers is equivalent to a hide-and-seek game

Abstract: Matching problems with linearly transferable utility (LTU) generalize the well-studied transferable utility (TU) case by relaxing the assumption that utility is transferred one-for-one within matched pairs. We show that LTU matching problems can be reframed as nonzero-sum games between two players, thus generalizing a result from von Neumann. The underlying linear programming structure of TU matching problems, however, is lost when moving to LTU. These results draw a new bridge between non-TU matching problems and the theory of bimatrix games, with consequences notably regarding the computation of stable outcomes.
Subjects: Theoretical Economics (econ.TH)
Cite as: arXiv:2402.12200 [econ.TH]
  (or arXiv:2402.12200v2 [econ.TH] for this version)

Submission history

From: Antoine Jacquet [view email]
[v1] Mon, 19 Feb 2024 15:04:05 GMT (18kb)
[v2] Thu, 25 Apr 2024 15:21:40 GMT (21kb)

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