Generalized assignment models: with an applicationto technology transfer

We consider a generalized assignment model where the payoffs depend on the number of matchings that take place. We formulate a simple non-cooperative game and look for subgame perfect equilibrium of this model. Existence is established for a wide class of games. We also look at a refinement criterion which, for the standard assignment model, selects the $p$-optimal outcome as the unique equilibrium. We then apply these concepts to a model of technology transfer between domestic and foreign firms.