Synchronized matching with incomplete information

Terence R. Johnson
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Terence R. Johnson: Department of Economics, University of Notre Dame

Economic Theory, 2019, vol. 67, issue 3, No 5, 589-616

Abstract: Abstract This paper considers two-sided matching in continuous time without transferable utility or costly effort signaling. Two continua of impatient agents signal their types by delaying before proposing or accepting a match. I use a mechanism design approach to study what matchings and schedules of match times are implementable when there is private information on one or both sides. When only one side has private information, a sufficient condition to implement assortative matching is for the uninformed side to value the log gain in partner quality from waiting more than the informed side, so that it pays to wait. When information is incomplete on both sides, the sufficient conditions to implement assortative matching are much more restrictive: even when coarse matching is considered, a simple sufficient condition is provided under which only simple random matching is implementable.

Keywords: Matching; Mechanism design; Non-transferable Utility (search for similar items in EconPapers)
JEL-codes: C73 C78 D85 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s00199-018-1127-7

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