The even split rule in positive assortative matching

B-Tier
Journal: Journal of Mathematical Economics
Year: 2019
Volume: 81
Issue: C
Pages: 57-61

Authors (1)

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

Many economic models, especially in two-sided matching literature, involve breaking down a supermodular function into two supermodular functions according to a certain allocation rule. The conventional wisdom is to invoke the Nash bargaining solution, which boils down to an even split rule within the transferable utility framework. This paper rationalizes the use of the Nash bargaining solution in a two-sided matching model by showing that the even split rule is the only allocation which allows the net benefit functions to inherit supermodularity from the joint surplus function, which is necessary to ensure positive assortative matching.

Technical Details

RePEc Handle
repec:eee:mateco:v:81:y:2019:i:c:p:57-61
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25