On the partnership formation problem

DOI link to open access article: On the partnership formation problem

Akiyoshi Shioura

Journal of Mechanism and Institution Design
Volume 2, issue 1, pages 105-140 (December 2017)
doi: 10.22574/jmid.2017.12.004


In this paper we re-examine the partnership formation problem, which is a generalization of the classical assignment game. We show that the former problem can be transformed into the latter one in some sense; more precisely, we demonstrate that using an equilibrium in an associated assignment game, we can find an equilibrium in the partnership formation problem if it exists. Based on this, we devise an algorithm to compute an equilibrium of the partnership formation problem, and show that the proposed algorithm can be seen as avariant of the one by Andersson et al. (2014b).

Keywords: Partnership formation, equilibrium, assignment game, adjustment process.

JEL Classification Numbers: C71, D44.