Matching with Contracts

S-Tier
Journal: American Economic Review
Year: 2005
Volume: 95
Issue: 4
Pages: 913-935

Authors (2)

John William Hatfield (not in RePEc) Paul R. Milgrom (Stanford University)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We develop a model of matching with contracts which incorporates, as special cases, the college admissions problem, the Kelso-Crawford labor market matching model, and ascending package auctions. We introduce a new "law of aggregate demand" for the case of discrete heterogeneous workers and show that, when workers are substitutes, this law is satisfied by profit-maximizing firms. When workers are substitutes and the law is satisfied, truthful reporting is a dominant strategy for workers in a worker-offering auction/matching algorithm. We also parameterize a large class of preferences satisfying the two conditions.

Technical Details

RePEc Handle
repec:aea:aecrev:v:95:y:2005:i:4:p:913-935
Journal Field
General
Author Count
2
Added to Database
2026-01-26