Generalized coarse matching

Ran Shao ()

Games and Economic Behavior, 2016, vol. 100, issue C, 142-148

Abstract: This paper analyzes the problem of matching two heterogeneous populations, such as men and women. If the payoff from a match exhibits complementarities, it is well known that, absent any friction, positive assortative matching is optimal. Coarse matching refers to a situation in which the populations are sorted into a finite number of classes and then randomly matched within these classes. We derive upper bounds on the fraction of the total efficiency loss of n-class coarse matching, which is proportional to 1/n2. Our result substantially enlarges the scope of matching problems in which the performance of coarse matching can be assessed.

Keywords: Coarse matching; Grüss's inequality; Assortative matching (search for similar items in EconPapers)
JEL-codes: D42 D82 D83 D86 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:100:y:2016:i:c:p:142-148

DOI: 10.1016/j.geb.2016.09.008

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