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A labor market with heterogeneous firms and workers. (English) Zbl 1082.91005

Summary: A labor market where firms and workers are heterogeneous and may form more than one partnership is considered. A natural concept of core for such markets, different from the concept used by G. L. Thompson [Lect. Notes Econ. Math. Syst. 174, 312–334 (1980; Zbl 0448.90004 )], is defined. We show that the core is non-empty and is, in general, strictly greater than Thompson’s core. Unlike Thompson, we found several dissimilarities between our model and the well known one-to-one case studied in L. S. Shapley and M. Shubik [Int. J. Game Theory 1, 111–130 (1971; Zbl 0236.90078)].

MSC:

91A05 2-person games
91B40 Labor market, contracts (MSC2010)
91B68 Matching models
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