Over the past few decades, matching models, which use mathematical
frameworks to analyze allocation mechanisms for heterogeneous
products and individuals, have attracted renewed attention in both
theoretical and applied economics. These models have been used in
many contexts, from labor markets to organ donations, but recent
work has tended to focus on "nontransferable" cases rather than
matching models with transfers. In this important book,
Pierre-Andre Chiappori fills a gap in the literature by presenting
a clear and elegant overview of matching with transfers and
provides a set of tools that enable the analysis of matching
patterns in equilibrium, as well as a series of extensions. He then
applies these tools to the field of family economics and shows how
analysis of matching patterns and of the incentives thus generated
can contribute to our understanding of long-term economic trends,
including inequality and the demand for higher education.
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