In matching markets, the existence of stable matchings can only be guaranteed under substantive restrictions on …, following the work of Aumann (1964) on general equilibrium theory. We find four main results: First, in many-to-many matching …

are no transaction costs, the outcome of this matching and bargaining game should be the unique competitive equilibrium … equilibrium that survives is the unique competitive outcome. This will be done both for the random matching and for the voluntary … matching models. Thus the paper demonstrates that complexity costs might have a role in providing a justification for the …

increasing in h, where h is worker skill and p is firm productivity). In this sense, the positive assortative matching result in … Becker (1973) is shown to generalize to this paper's search friction setting. However, the positive assortative matching …