Regularity properties of optimal transportation problems arising in hedonic pricing models

Brendan Pass

ESAIM: Control, Optimisation and Calculus of Variations (2013)

  • Volume: 19, Issue: 3, page 668-678
  • ISSN: 1292-8119

Abstract

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We study a form of optimal transportation surplus functions which arise in hedonic pricing models. We derive a formula for the Ma–Trudinger–Wang curvature of these functions, yielding necessary and sufficient conditions for them to satisfy (A3w). We use this to give explicit new examples of surplus functions satisfying (A3w), of the form b(x,y) = H(x + y) where H is a convex function on ℝn. We also show that the distribution of equilibrium contracts in this hedonic pricing model is absolutely continuous with respect to Lebesgue measure, implying that buyers are fully separated by the contracts they sign, a result of potential economic interest.

How to cite

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Pass, Brendan. "Regularity properties of optimal transportation problems arising in hedonic pricing models." ESAIM: Control, Optimisation and Calculus of Variations 19.3 (2013): 668-678. <http://eudml.org/doc/272953>.

@article{Pass2013,
abstract = {We study a form of optimal transportation surplus functions which arise in hedonic pricing models. We derive a formula for the Ma–Trudinger–Wang curvature of these functions, yielding necessary and sufficient conditions for them to satisfy (A3w). We use this to give explicit new examples of surplus functions satisfying (A3w), of the form b(x,y) = H(x + y) where H is a convex function on ℝn. We also show that the distribution of equilibrium contracts in this hedonic pricing model is absolutely continuous with respect to Lebesgue measure, implying that buyers are fully separated by the contracts they sign, a result of potential economic interest.},
author = {Pass, Brendan},
journal = {ESAIM: Control, Optimisation and Calculus of Variations},
keywords = {optimal transportation; hedonic pricing; Ma–Trudinger–Wang curvature; matching; Monge–Kantorovich; regularity of solutions; Ma-Trudinger-Wang curvature; Monge-Kantorovich},
language = {eng},
number = {3},
pages = {668-678},
publisher = {EDP-Sciences},
title = {Regularity properties of optimal transportation problems arising in hedonic pricing models},
url = {http://eudml.org/doc/272953},
volume = {19},
year = {2013},
}

TY - JOUR
AU - Pass, Brendan
TI - Regularity properties of optimal transportation problems arising in hedonic pricing models
JO - ESAIM: Control, Optimisation and Calculus of Variations
PY - 2013
PB - EDP-Sciences
VL - 19
IS - 3
SP - 668
EP - 678
AB - We study a form of optimal transportation surplus functions which arise in hedonic pricing models. We derive a formula for the Ma–Trudinger–Wang curvature of these functions, yielding necessary and sufficient conditions for them to satisfy (A3w). We use this to give explicit new examples of surplus functions satisfying (A3w), of the form b(x,y) = H(x + y) where H is a convex function on ℝn. We also show that the distribution of equilibrium contracts in this hedonic pricing model is absolutely continuous with respect to Lebesgue measure, implying that buyers are fully separated by the contracts they sign, a result of potential economic interest.
LA - eng
KW - optimal transportation; hedonic pricing; Ma–Trudinger–Wang curvature; matching; Monge–Kantorovich; regularity of solutions; Ma-Trudinger-Wang curvature; Monge-Kantorovich
UR - http://eudml.org/doc/272953
ER -

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