Assignment games represent a tractable yet versatile model of two-sided markets with transfers. We study the likely properties of the core of randomly generated assignment games. If the joint productivities of every firm and worker are i.i.d bounded random variables, then with high probability all workers are paid roughly equal wages, and all firms make similar profits. This implies that core allocations vary significantly in balanced markets, but that there is core convergence in even slightly unbalanced markets. For the benchmark case of uniform distribution, we provide a tight bound for the workers' share of the surplus under the firm-optimal core allocation. We present simulation results suggesting that the phenomena analyzed appear even in medium-sized markets. Finally, we briefly discuss the effects of unbounded distributions and the ways in which they may affect wage dispersion.
@cite_14: The set of optimal matchings in the assignment matrix allows to define a reflexive and symmetric binary relation on each side of the market, the equal-partner binary relation. The number of equivalence classes of the transitive closure of the equal-partner binary relation determines the dimension of the core of the assignment game. This result provides an easy procedure to determine the dimension of the core directly from the entries of the assignment matrix and shows that the dimension of the core is not as much determined by the number of optimal matchings as by their relative position.
@cite_28: We study a labor market with finitely many heterogeneous workers and firms to illustrate the decentralized (myopic) blocking dynamics in two-sided one-to-one matching markets with continuous side payments (assignment problems, Shapley and Shubik, 1971). A labor market is unstable if there is at least one blocking pair, that is, a worker and a firm who would prefer to be matched to each other in order to obtain higher payoffs than the payoffs they obtain by being matched to their current partners. A blocking path is a sequence of outcomes (specifying matchings and payoffs) such that each outcome is obtained from the previous one by satisfying a blocking pair (i.e., by matching the two blocking agents and assigning new payoffs to them that are higher than the ones they received before). We are interested in the question if starting from any (unstable) outcome, there always exists a blocking path that will lead to a stable outcome. In contrast to discrete versions of the model (i.e., for marriage markets, one-to-one matching, or discretized assignment problems), the existence of blocking paths to stability cannot always be guaranteed. We identify a necessary and sufficient condition for an assignment problem (the existence of a stable outcome such that all matched agents receive positive payoffs) to guarantee the existence of paths to stability and show how to construct such a path whenever this is possible.
@cite_29: Payoff-driven adjustment dynamics lead to stable and optimal outcomes in decentralized two-sided assignment markets. Pairs of agents from both sides of the market randomly encounter each other and match if profitable'. Very little information is available, in particular agents have no knowledge of others' preferences, their past actions and payoffs or the value of the different matches. This process implements optimal and stable - i.e. core - allocations even though agents interact asynchronously and randomly, and there is no central authority enforcing matchings or sharing rules.
@cite_9: We define the median stable matching for two-sided matching markets with wages and prove constructively that it exists.
@cite_3: 
@cite_6: The assignment game is a model for a two-sided market in which a product that comes in large, indivisible units (e.g., houses, cars, etc.) is exchanged for money, and in which each participant either supplies or demands exactly one unit. The units need not be alike, and the same unit may have different values to different participants. It is shown here that the outcomes in thecore of such a game — i.e., those that cannot be improved upon by any subset of players — are the solutions of a certain linear programming problem dual to the optimal assignment problem, and that these outcomes correspond exactly to the price-lists that competitively balance supply and demand. The geometric structure of the core is then described and interpreted in economic terms, with explicit attention given to the special case (familiar in the classic literature) in which there is no product differentiation — i.e., in which the units are interchangeable. Finally, a critique of the core solution reveals an insensitivity to some of the bargaining possibilities inherent in the situation, and indicates that further analysis would be desirable using other game-theoretic solution concepts.
@cite_2: Abstract This paper presents several comparative statics results concerning the entry problem in assignment games. The results compare sets of equilibria, and hence do not require the usual assumption of a unique equilibrium. By the device of a “competing-group generator,” the set of players is decomposed into three interest groups, for which three forms of entry effects are identified. For the group with the strongest entry effect, it is found that, generically, (1) the benefit functions form a complete ordering and (2) the turnover effect dominates the unemployment effect. The implications of these results to bargaining, immigrations, and matching problems are discussed.
@cite_16: Abstract : A two sided matching model is a game in which there are two types of agents, and the essential coalitions are singletons and doubletons containing one agent of each type. Over the years, they have become an important part of economic theory. One reason for this is that they have been deemed worthy models of economic markets with indivisible goods. Gale and Shapley modeled college admissions as a matching market. Shapley and Shubik adopted a similar model for their housing market. Crawford and Knoer defined labor markets in these terms. In all of these instances, the relevant solution concept is that of the core which is the set of economic allocations where no coalition of agents can improve their lot on their own. Herein lies another reason for the study of these games; the fact that their cores have many nice properties. For instance, their cores are always nonempty. Much of the literature relate relatively simple algorithms which calculate core points. Another important idea is that in some of these games, the core and the set of economic equilibria are equivalent and both are generally sets of positive measure. This contrasts other economic models (with completely divisible goods) in which the set of equilibria is a proper subset of the core and is of measure zero. Thus, given a sets of agents' preferences, there is usually some latitude in choosing equilibrium prices. Intuitively, the amount of flexibility would be measured by the core's volume. This paper quantifies this last notion in the setting of Shapley and Shubik's housing market.
@cite_10: Abstract : Markets are formulated as cooperative n-person games in which the players are divided into two camps, the buyers and the sellers, with some kind of profitable exchange going on between them. The solutions of several examples are discussed and a general notion of 'abstract market game' is defined.
@cite_11: We analyze a decentralized trading process in a basic labor market where heterogeneous firms and workers meet directly and randomly, and negotiate salaries with each other over time. Firms and workers may not have a complete picture of the entire market and can thus behave myopically in the process. Our main result establishes that, starting from an arbitrary initial market state, there exists a finite sequence of successive myopic (firm-worker) pair improvements, or bilateral trades, leading to a stable matching between firms and workers with a scheme of competitive salary offers. An important implication of this result is that a general random process where every possible bilateral trade is chosen with a positive probability converges with probability one to a competitive equilibrium of the market.
Assignment games were introduced by @cite_10 and thoroughly analyzed by @cite_6 . A (non-comprehensive) list of further work on assignment games includes the study of strategic incentives @cite_3 , entry @cite_2 , convergence via decentralized processes @cite_11 @cite_28 @cite_29 , elongation of the core @cite_16 and its dimensions @cite_14 , and median stable matchings @cite_9 .