Comparative Statics in Markets for Indivisible Goods

Andrew Caplin and John Leahy

No 16285, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We complete the study of comparative statics initiated in Caplin and Leahy [2010], which introduced a new mathematical apparatus for understanding NTU allocation markets, as such covering the housing market and other markets for large indivisible goods. We introduce homotopy methods to characterize how equilibrium changes in response to arbitrary parameter changes. Generically, we show that there can be five and only five qualitatively distinct forms of market transition: Graft; Prune and Plant; Prune and Graft; Cycle and Reverse; and Shift and Replant. Our path-following methods identify new algorithms for computing market equilibria.

JEL-codes: C63 D40 E1 R31 (search for similar items in EconPapers)
Date: 2010-08
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as Andrew Caplin & John Leahy, 2020. "Comparative statics in markets for indivisible goods," Journal of Mathematical Economics, .

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Journal Article: Comparative statics in markets for indivisible goods (2020)
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