Stable matching as transportation
CoRR(2024)
Abstract
We study matching markets with aligned preferences and establish a connection
between common design objectives – stability, efficiency, and fairness – and
the theory of optimal transport. Optimal transport gives new insights into the
structural properties of matchings obtained from pursuing these objectives, and
into the trade-offs between different objectives. Matching markets with aligned
preferences provide a tractable stylized model capturing supply-demand
imbalances in a range of settings such as partnership formation, school choice,
organ donor exchange, and markets with transferable utility where bargaining
over transfers happens after a match is formed.
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