Comparative statics in markets for indivisible goods

B-Tier
Journal: Journal of Mathematical Economics
Year: 2020
Volume: 90
Issue: C
Pages: 80-94

Authors (2)

Caplin, Andrew (not in RePEc) Leahy, John

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper builds upon Caplin and Leahy (2014), which introduced a new mathematical apparatus for understanding allocation markets with nontransferable utility, as such covering the housing market and other markets for large indivisible goods. In the current paper we complete the study of comparative statics initiated therein. 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.

Technical Details

RePEc Handle
repec:eee:mateco:v:90:y:2020:i:c:p:80-94
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25