COMPETITIVE EQUILIBRIA IN MATCHING MODELS WITH FINANCIAL CONSTRAINTS

B-Tier
Journal: International Economic Review
Year: 2022
Volume: 63
Issue: 2
Pages: 777-802

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

We consider a matching with contracts model in which buyers face financial constraints. In this model, a competitive equilibrium may fail to exist. We therefore propose the new notion of quantity‐constrained competitive equilibrium (QCCE). At a QCCE, buyers form expectations about the expected supply of trades. A buyer may expect that a trade is not to be supplied if the corresponding financial constraint is binding. We show the existence of QCCEs via a dynamic process that updates prices and quantity constraints, the equivalence between QCCE outcomes and stable outcomes, and some other properties of QCCEs like the lattice property.

Technical Details

RePEc Handle
repec:wly:iecrev:v:63:y:2022:i:2:p:777-802
Journal Field
General
Author Count
2
Added to Database
2026-01-25