This paper examines a class of two-sided matching problems with non-transferable utility. Agents are horizontally differentiated, and each would prefer to be matched to a similar partner, i.e. "like attracts like". such preferences imply a unique equilibrium assignment describing the pattern of...

This paper analyses a sufficient condition for uniqueness of equilibrium in two-sided matching with non-transferable utility. The condition is easy to interpret, being based on the notion that a person’s characteristics both form the basis of their attraction to the opposite sex, and determine...

We study the incentive to invest to improve marriage prospects, in a frictionless marriage market with non-transferable utility. Stochastic returns to investment eliminate the multiplicity of equilibria in models with deterministic returns, and a unique equilibrium exists under reasonable...

In many decentralised markets, the traders who benefit most from an exchange do not employ intermediaries even though they can easily afford them. For other traders, those who benefit little from trade, intermediaries are too expensive. Together, these observations lead to empirically observed...