A Labor Market for Lawyers

The market contains “workers” and “firms.” Workers and firms are matched together, one-to-one. Utility is transferable among workers and firms. Each matched, if formed will generate surplus. We ask:

• Characterize optimal matches?
• Can they be decentralized by a market-like arrangement?
• How is the surplus allocated among workers and firms?
• Is there a mechanism that will implement the market solution?

Classic article: Shapley and Shubik. 1971. “The Assigment Game I: The Core.” International Journal of Game Theory 1(1): 111-30.