Self-fulfilling early-contracting rush

• 成果类型: Article
• 署名作者: Li, H; Suen, W
• 署名单位: University of Hong Kong; University of Toronto
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2004.00127.x
• 发表日期: 2004
• 页码: 301-324
• 关键词: law-clerks; Bank runs; equilibrium; MARKET

摘要

In markets for entry-level professionals, the insurance motive drives some participants to sign early contracts. The rush to early contracting can be self-fulfilling, as both its effect on expectations about demand-supply balance in the subsequent spot market and the effect on it from changes in the demand-supply balance can be nonmonotone. Matching markets with more risk-averse participants, a greater uncertainty regarding relative supply of positions, or a more polarized distribution of applicant qualities are more vulnerable to self-fulfilling early-contracting rushes. Employers can have a collective interest in preventing early offers to a few promising applicants from starting the rushes.