Abstract
We examine the relationship between the matching structure of a bipartite (buyer-seller) network and the (expected) shares of the unit surplus that each connected pair in this network can create. We show that in different bargaining environments, these shares are closely related to the Gallai-Edmonds Structure Theorem. This theorem characterizes the structure of maximum matchings in an undirected graph. We show that the relationship between the (expected) shares and the tructure Theorem is not an artefact of a particular bargaining mechanism or trade centralization. However, this relationship does not necessarily generalize to non-bipartite networks or to networks with heterogeneous link values.
Original language | English |
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Pages (from-to) | 767-776 |
Number of pages | 10 |
Journal | Social Choice and Welfare |
Volume | 46 |
Issue number | 4 |
Early online date | 26 Nov 2015 |
DOIs | |
Publication status | Published - Apr 2016 |
Keywords
- Buyer-seller networks
- Gallai-Edmonds structure theorem
- Bargaining
- Matching
Profiles
-
Arnold Polanski
- School of Economics - Associate Professor in Economics
- Applied Econometrics And Finance - Member
- Economic Theory - Member
- Statistics - Member
Person: Research Group Member, Academic, Teaching & Research