Solving Becker's assortative assignments and extensions

Abstract

We analyze assortative assignment games, introduced in Becker (1973) and Eriksson et al. (2000). We study the extreme core points and show an easy way to compute them. We find a natural solution for these games. It coincides with several well-known point solutions, the median stable utility solution (Schwarz and Yenmez, 2011) and the nucleolus (Schmeidler, 1969).We also analyze the behavior of the Shapley value. We finish with some extensions, where some hypotheses are relaxed.