Multilateral matching

We introduce a matching model in which agents engage in joint ventures via multilateral contracts. This approach allows us to consider production complementarities previously outside the scope of matching theory. We show analogues of the first and second welfare theorems, and, when agents’ utilities are concave in venture participation, show that competitive equilibria exist, correspond to stable outcomes, and yield core outcomes. Competitive equilibria exist in our setting even when externalities are present. JEL classification: C78; C62; C71; D85; L14; L24

• Type: Journal
• Year: 2011
• Where: SIGECOM
• Authors: John William Hatfield, Scott Duke Kominers
• Keywords: Analogues, ECommerce, Joint Ventures, SIGECOM 2011, Theorems