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Bidimensional matching with heterogeneous preferences: smoking in the marriage market

Abstract:

We develop a bidimensional matching model under transferable utility, where individuals are characterized by a continuous trait (e.g., socioeconomic status) and a binary attribute (e.g., smoking status). The model is "truly multidimensional", in the sense that the impact of the traits cannot be summarized by a one-dimensional index. We present a general resolution strategy based on optimal control theory, and characterize the stable matching. We derive testable predictions about equilibriu...

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Publication status:
Published

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Publisher:
University of Oxford Publisher's website
Series:
Department of Economics Discussion Paper Series
Publication date:
2014-01-29
Paper number:
696
Keywords:
Pubs id:
1143715
Local pid:
pubs:1143715
Deposit date:
2020-12-15

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