In a transferable utility context, Choo and Siow (2006) introduced a competitive model of the marriage market with gumbel distributed stochastic part, and derived its equilibrium output, a marriage match- ing function. The marriage matching function defines the gains generated by a marriage between agents of prescribed types in terms of the observed frequency of such marriages within the population, relative to the number of unmarried individuals of the same types. Left open in their work is the issue of existence and uniqueness of equilibrium. We resolve this question in the affirmative, assuming the norm of the gains matrix (viewed as an operator) to be less than two. Our method adapts a strategy called the continuity method,more commonly used to solve elliptic partial differen- tial equations, to the new setting of isolating positive roots of polynomial systems. Finally, the data estimated in [4] falls within the scope of our results.
| Identifer | oai:union.ndltd.org:TORONTO/oai:tspace.library.utoronto.ca:1807/26322 |
| Date | 22 February 2011 |
| Creators | Decker, Colin |
| Contributors | McCann, Robert |
| Source Sets | University of Toronto |
| Language | en_ca |
| Detected Language | English |
| Type | Thesis |
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