@article{02355bccdb9c4a4fbcf25d5fad413ab6,
title = "Costly concessions: An empirical framework for matching with imperfectly transferable utility",
abstract = "We introduce an empirical framework for models of matching with imperfectly transferable utility and unobserved heterogeneity in tastes. Our framework allows us to characterize matching equilibrium in a flexible way that includes as special cases fully and nontransferable utility models, collective models, and settings with taxes on transfers. We allow for the introduction of a general class of additive unobserved heterogeneity on agents{\textquoteright} preferences. We show existence and uniqueness of an equilibrium under minimal assumptions. We provide two algorithms to compute the equilibrium in our model. We then show that the associated log likelihood has a simple expression and compute its derivatives. An empirical illustration is provided in the appendix.",
author = "Alfred Galichon and Kominers, {Scott Duke} and Simon Weber",
note = "Funding Information: Applications, and the Human Capital and Economic Opportunity Working Group sponsored by the Institute for New Economic Thinking. We thank the editor, James J. Heckman, and three anonymous reviewers for very helpful comments. Additionally, we appreciate the insightful comments of Eduardo Azevedo, Pierre-Andr{\'e} Chiappori, Edoardo Ciscato, Matthew Gentzkow, Yinghua He, Yu-Wei Hsieh, Murat Iyigun, Sonia Jaffe, Thierry Magnac, Ismael Mourifi{\'e}, Bernard Salani{\'e}, Aloysius Siow, Heidi Williams, and seminar participants at the American Economic Association meetings; the University of California, Berkeley; Boston University; the University of Chicago; the Einaudi Institute for Economics and Finance; the Fields Institute; Harvard; MIT; New York University; Penn State University; Princeton; Sciences Po; Stanford; the University of Toronto; University of California, Los Angeles; the University of Pennsylvania; Yale; and the University of Z{\"u}rich. Yue Li provided great research assistance. Much of this research was conducted while Galichon was a faculty member at Sciences Po, Kominers was a junior fellow at the Harvard Society of Fellows, and Weber was a research scholar at the Becker Friedman Institute at the University of Chicago. Funding Information: Galichon gratefully acknowledges funding from National Science Foundation (NSF) grant DMS-1716489 and from the European Research Council (ERC) under the European Union{\textquoteright}s Seventh Framework Programme (FP7; 2007–13), ERC grant agreement 312503, as well as the hospitality of the Massachusetts Institute of Technology (MIT). Kominers gratefully acknowledges the support of the NSF (grants CCF-1216095 and SES-1459912), the Harvard Milton Fund, the Washington Center for Equitable Growth, the Ng Fund and the Mathematics in Economics Research Fund of the Harvard Center of Mathematical Sciences and Funding Information: Galichon gratefully acknowledges funding from National Science Foundation (NSF) grant DMS-1716489 and from the European Research Council (ERC) under the European Union?s Seventh Framework Programme (FP7; 2007?13), ERC grant agreement 312503, as well as the hospitality of the Massachusetts Institute of Technology (MIT). Kominers gratefully acknowledges the support of the NSF (grants CCF-1216095 and SES-1459912), the Harvard Milton Fund, the Washington Center for Equitable Growth, the Ng Fund and the Mathematics in Economics Research Fund of the Harvard Center of Mathematical Sciences and Applications, and the Human Capital and Economic Opportunity Working Group sponsored by the Institute for New Economic Thinking. We thank the editor, James J. Heckman, and three anonymous reviewers for very helpful comments. Additionally, we appreciate the insightful comments of Eduardo Azevedo, Pierre-Andr? Chiappori, Edoardo Ciscato, Matthew Gentzkow, Yinghua He, Yu-Wei Hsieh, Murat Iyigun, Sonia Jaffe, Thierry Magnac, Ismael Mourifi?, Bernard Salani?, Aloysius Siow, Heidi Williams, and seminar participants at the American Economic Association meetings; the University of California, Berkeley; Boston University; the University of Chicago; the Einaudi Institute for Economics and Finance; the Fields Institute; Harvard; MIT; New York University; Penn State University; Princeton; Sciences Po; Stanford; the University of Toronto; University of California, Los Angeles; the University of Pennsylvania; Yale; and the University of Z?rich. Yue Li provided great research assistance. Much of this research was conducted while Galichon was a faculty member at Sciences Po, Kominers was a junior fellow at the Harvard Society of Fellows, and Weber was a research scholar at the Becker Friedman Institute at the University of Chicago. Publisher Copyright: {\textcopyright} 2019 by The University of Chicago. All rights reserved.",
year = "2019",
month = dec,
day = "1",
doi = "10.1086/702020",
language = "English (US)",
volume = "127",
pages = "2875--2925",
journal = "Journal of Political Economy",
issn = "0022-3808",
publisher = "University of Chicago",
number = "6",
}