Expectational Equilibria in Many-to-one Matching Models with Contracts - A Reformulation of Competitive Equilibrium

P. Jean-Jacques Herings

No 18, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)

Abstract: We introduce the notion of expectational equilibrium in a very general specification of the many-to-one matching with contracts model. The endogenous variables in an expectational equilibrium are expectations about tradable contracts. Expectational equilibrium outcomes are equivalent to stable outcomes. Substitutability of preferences is a sufficient condition for existence. Expectational equilibrium unifies all the other approaches used in the literature so far, in particular Walrasian equilibrium, Drèze equilibrium, and market clearing cutoffs. It also applies to cases where contracts do not involve money as well as cases where there is a smallest monetary unit of account.

JEL-codes: C71 C78 D45 D51 (search for similar items in EconPapers)
Date: 2020-07-02
New Economics Papers: this item is included in nep-cta, nep-des, nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2020018

DOI: 10.26481/umagsb.2020018

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