Stable matching as transport

Fuente: arXiv
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Autores principales: Echenique, Federico, Root, Joseph, Sandomirskiy, Fedor
Formato: Preprint
Publicado: 2024
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author Echenique, Federico
Root, Joseph
Sandomirskiy, Fedor
author_facet Echenique, Federico
Root, Joseph
Sandomirskiy, Fedor
contents This paper links matching markets with aligned preferences to optimal transport theory. We show that stability, efficiency, and fairness emerge as solutions to a parametric family of optimal transport problems. The parameter reflects society's preferences for inequality. This link offers insights into structural properties of matchings and trade-offs between objectives; showing how stability can lead to welfare inequalities, even among similar agents. Our model captures supply-demand imbalances in contexts like spatial markets, school choice, and ride-sharing. We also show that large markets with idiosyncratic preferences can be well approximated by aligned preferences, expanding the applicability of our results.
format Preprint
id arxiv_https___arxiv_org_abs_2402_13378
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Stable matching as transport
Echenique, Federico
Root, Joseph
Sandomirskiy, Fedor
Theoretical Economics
Computer Science and Game Theory
91B68, 90C08
This paper links matching markets with aligned preferences to optimal transport theory. We show that stability, efficiency, and fairness emerge as solutions to a parametric family of optimal transport problems. The parameter reflects society's preferences for inequality. This link offers insights into structural properties of matchings and trade-offs between objectives; showing how stability can lead to welfare inequalities, even among similar agents. Our model captures supply-demand imbalances in contexts like spatial markets, school choice, and ride-sharing. We also show that large markets with idiosyncratic preferences can be well approximated by aligned preferences, expanding the applicability of our results.
title Stable matching as transport
topic Theoretical Economics
Computer Science and Game Theory
91B68, 90C08
url https://arxiv.org/abs/2402.13378