Matching with Trade-offs: Preferences over Competing Characteristics Galichon Alfred author Salanie Bernard author Columbia University. Economics Columbia University. Economics originator contributor text Working papers New York Department of Economics, Columbia University 2010 English We investigate in this paper the theory and econometrics of optimal matchings with competing criteria. The surplus from a marriage match, for instance, may depend both on the incomes and on the educations of the partners, as well as on characteristics that the analyst does not observe. The social optimum must therefore trade off matching on incomes and matching on educations. Given a flexible specification of the surplus function, we characterize under mild assumptions the properties of the set of feasible matchings and of the socially optimal matching. Then we show how data on the covariation of the types of the partners in observed matches can be used to estimate the parameters that define social preferences over matches. We provide both nonparametric and parametric procedures that are very easy to use in applications. Economic theory Department of Economics Discussion Papers 0910-14 http://hdl.handle.net/10022/AC:P:9186 NNC NNC 2010-07-06 17:10:10 -0400 2011-08-02 13:09:13 -0400 1667 eng