Nicolò A., Salmaso P., Sen A., Yadav S. (2022).
Stable Sharing. SSRN 4358029.
We propose a simple model in which agents are matched in pairs in order to complete a task of unit size. The preferences of agents are single-peaked and continuous on the amount of time they devote to it. Our model combines features of two models: assignment games (Shapley and Shubik (1971)) and the division problem (Sprumont (1991)). We provide an algorithm (Select-Allocate-Match) that generates a stable and Pareto efficient allocation. We show that stable allocations may fail to exist if either the single-peakedness or the continuity assumption fail.