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Transferable Utility Matching Beyond Logit: Computation and Estimation with General Heterogeneity

Alfred Galichon, Antoine Jacquet, Georgy Salakhutdinov

arXiv 28 Nov 2025 · Econometrics

arXiv:2511.23116 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We present a general framework for matching with transferable utility (TU) that accommodates arbitrary heterogeneity without relying on the logit structure. The optimal assignment problem is characterized by tractable linear programming formulation, allowing flexible error distributions and correlation patterns. We introduce an iterative algorithm that solves large-scale assignment problems with guaranteed convergence and an intuitive economic interpretation, and we show how the same structure supports a simulated moment-matching estimator of the systematic surplus. Experiments using simulated data demonstrate the algorithm's scalability and the estimator's consistency under correct specification, as well as systematic bias arising from logit misspecification.

Citation extraction

14
references
27
in-text mentions
14
distinct cited
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8,717
main-text words

appendix boundary found by appendix_command · 73% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Choo, E. and Siow, A (2006) Who Marries Whom and Why1.00073100%
2Alfred Galichon and Bernard Salanié (2022) Cupid’s Invisible Hand: Social Surplus and Identification in Matching Models self1.00063100%
3George B. Dantzig and Philip Wolfe (1960) Decomposition Principle for Linear Programs0.64422100%
4L. S. Shapley and M. Shubik (1971) The assignment game I: the core0.64422100%
5Alberto Bisin and Giulia Tura (2019) Marriage, Fertility, and Cultural Integration in Italy0.40511100%
6Pierre-André Chiappori and D. L. Nguyen and Bernard Salanié (2019) Matching with Random Components: Simulations0.40511100%
7Pierre-André Chiappori and Bernard Salanié and Yoram Weiss (2017) Partner Choice, Investment in Children, and the Marital College Premium0.40511100%
8Edoardo Ciscato (2025) Assessing Racial and Educational Segmentation in Large Marriage Markets0.40511100%
9Gale, D. and Shapley, L. S (1962) College admissions and the stability of marriage0.40511100%
10Marion Goussé and Nicolas Jacquemet and Jean-Marc Robin (2017) Marriage, labor supply, and home production0.40511100%

Showing the top 10 of 14 scored citations.