Aggregate behavior in matching markets with flexible contracts and non-transferable representations of preferences

John Dagsvik and Zhiyang Jia

Discussion Papers from Statistics Norway, Research Department

Abstract: This paper modifies and extends the aggregate equilibrium models for matching markets developed earlier in the literature. Agents in the matching market search for a match among potential partners, including agreements about a flexible contract, such as hours and wage combinations in the labor market. Under general utility representations that are non-transferable and assuming the matching is stable, we derive a probabilistic framework for the probability of realizing a particular match, including the choice of contract. We also show that the popular transferable utility model with transferable utilities can be viewed as a limiting case within our modelling framework. The framework is practical to apply for empirical analysis and is at the same time sufficiently general to accommodate essential features of matching markets with heterogeneous agents.

Keywords: Matching markets; Aggregation; Latent choice sets; Random utility matching models (search for similar items in EconPapers)
JEL-codes: C51 J22 (search for similar items in EconPapers)
Pages: 70 pages
Date: 2018-05
New Economics Papers: this item is included in nep-cta, nep-gth, nep-lma and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.ssb.no/en/forskning/discussion-papers/_attachment/351140 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssb:dispap:875

Ordering information: This working paper can be ordered from
https://www.ssb.no/e ... tions-of-preferences

Access Statistics for this paper

More papers in Discussion Papers from Statistics Norway, Research Department P.O.Box 8131 Dep, N-0033 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by L Maasø ().