Fairness and competition in a bilateral matching market

B-Tier
Journal: Games and Economic Behavior
Year: 2024
Volume: 146
Issue: C
Pages: 121-136

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

This paper analyzes fairness and bargaining in a dynamic bilateral matching market. Traders from both sides of the market are pairwise matched to share the gains from trade. The bargaining outcome depends on the traders' fairness attitudes. In equilibrium fairness matters because of market frictions. But, when these frictions become negligible, the equilibrium approaches the Walrasian competitive equilibrium, independently of the traders' inequity aversion. Fairness may yield a Pareto improvement; but also the contrary is possible. Overall, the market implications of fairness are very different from its effects in isolated bilateral bargaining.

Technical Details

RePEc Handle
repec:eee:gamebe:v:146:y:2024:i:c:p:121-136
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24