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Munich Personal RePEc Archive

Independent Random Matching

Podczeck, Konrad and Puzzello, Daniela (2009): Independent Random Matching. Forthcoming in: Economic Theory

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Abstract

Random matching models with a continuum population are widely used in economics to study environments where agents interact in small coalitions. This paper provides foundations to such models. In particular, the paper establishes an existence result for random matchings that are universal in the sense that certain desirable properties are satisfied for any assignment of types to agents. The result applies to infinitely many types of agents, thus covering random matching models which are currently used in the literature without a foundation. Furthermore, the paper provides conditions guaranteeing uniqueness of random matching.

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