The matching problem with linear transfers is equivalent to a hide-and-seek game

A. Galichon, A. Jacquet

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Matching problems with linearly transferable utility (LTU) generalize the well-studied transferable utility (TU) case by relaxing the assumption that utility is transferred one-for-one within matched pairs. We show that LTU matching problems can be reframed as nonzero-sum hide-and-seek games between two players, thus generalizing a result from von Neumann. The underlying linear programming structure of TU matching problems, however, is lost when moving to LTU. These results draw a new bridge between non-TU matching problems and the theory of bimatrix games, with consequences notably regarding the computation of stable outcomes.

    Original languageEnglish (US)
    Pages (from-to)333-344
    Number of pages12
    JournalGames and Economic Behavior
    Volume152
    DOIs
    StatePublished - Jul 2025

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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