International Journal of Game Theory

, Volume 42, Issue 4, pp 835–844 | Cite as

Matching and price competition: beyond symmetric linear costs

  • Julio González-Díaz
  • Ron SiegelEmail author


Bulow and Levin’s (2006) “Matching and Price Competition” studies a matching model in which hospitals compete for interns by offering wages. We relax the assumption of symmetric linear costs and compare the pricing equilibrium that results to the firm-optimal competitive equilibrium. With linear and asymmetric costs, competition in the pricing equilibrium may not be localized, but all other qualitative comparisons of Bulow and Levin (2006) hold. With non-linear and symmetric costs workers’ average utility in the pricing equilibrium may be higher than in the firm- optimal competitive equilibrium. With asymmetric and non-linear costs, firms need not choose scores from an interval in a pricing equilibrium, which may make competition even less localized.


Matching Asymmetric non-linear costs All-pay contest Pricing equilibrium Competitive equilibrium 


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Copyright information

© Springer-Verlag 2012

Authors and Affiliations

  1. 1.Department of Statistics and Operations ResearchUniversity of Santiago de CompostelaSantiago de CompostelaSpain
  2. 2.Department of EconomicsNorthwestern UniversityEvanstonUSA

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