Repeated Matching Games: an Empirical Framework

With Jeremy Fox and Alfred Galichon.

We introduce a model of dynamic matching with transferable utility. Agents have individual states that evolve with current matches. Each period, a matching market with market-clearing prices takes place. We discuss a full equilibrium with time-varying distributions of agent types and show that a stationary equilibrium exists. We propose two algorithms to compute a stationary equilibrium and show how to modify the algorithms for estimation. We estimate a model of geographic mobility by Swedish engineers.