This paper considers a matching market with two-sided search and transferable utility where match payoffs depend on age at marriage (time until match) and search is finite. We define and prove existence of equilibrium, and provide sufficient conditions for positive assortative matching that build on restricting the slope and curvature of the marriage payoff function to generate single-peaked preferences in age and therefore convex matching sets. Payoff functions that are incompatible with positive sorting by age include all strictly increasing functions and constant flow payoffs enjoyed for some finite period.
"Age-Dependent Payoffs and Assortative Matching by Age in a Market with Search."
American Economic Journal: Microeconomics,
Bargaining Theory; Matching Theory
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Marriage; Marital Dissolution; Family Structure; Domestic Abuse