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Shapley and Scarf housing markets with consumption externalities
Journal article   Peer reviewed

Shapley and Scarf housing markets with consumption externalities

Maria Gabriella Graziano, Claudia Meo and Nicholas C. Yannelis
Journal of public economic theory, Vol.22(5), pp.1481-1514
09/01/2020
DOI: 10.1111/jpet.12470

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Abstract

We introduce externalities into the classical model by Shapley and Scarf; that is, agents care about others and their preferences are defined over allocations rather than over single indivisible goods. After collecting some results about the nonexistence of several cooperative solutions, we focus on stable allocations and propose domains of preferences that can guarantee that they both exist and form a stable set a la von Neumann and Morgenstern.
Business & Economics Economics Social Sciences

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