Price formation in a matching market with targeted offers

• 成果类型: Article
• 署名作者: Sakovics, Jozsef
• 署名单位: University of Edinburgh
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2014.05.008
• 发表日期: 2014
• 页码: 161-177
• 关键词: Diamond paradox; efficient matching; directed search

摘要

We model a market where the surpluses from seller buyer matches are heterogeneous but common knowledge. Price setting is synchronous with search: buyers simultaneously make one personalized offer each to the seller of their choice. With impatient players efficient coordination is not possible, and both temporary and permanent mismatches occur. Nonetheless, for patient players efficient matching (with monopsony wages) is an equilibrium. The setting is inspired by a labor market for highly skilled workers, such as the academic job market, but it can be easily adapted to, for example, the housing market or Internet advertising auctions. (C) 2014 Elsevier Inc. All rights reserved.