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Synchronized matching with incomplete information

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  • Terence R. Johnson

    (Department of Economics, University of Notre Dame)

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.

Suggested Citation

  • Terence R. Johnson, 2019. "Synchronized matching with incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 67(3), pages 589-616, April.
    • Handle: RePEc:spr:joecth:v:67:y:2019:i:3:d:10.1007_s00199-018-1127-7
    DOI: 10.1007/s00199-018-1127-7
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    References listed on IDEAS

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    1. Robert Shimer & Lones Smith, 2000. "Assortative Matching and Search," Econometrica, Econometric Society, vol. 68(2), pages 343-370, March.
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    Cited by:

    1. Rabah Amir, 2019. "Supermodularity and Complementarity in Economic Theory," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 67(3), pages 487-496, April.
    2. Liu, Jia-Cai & Sheu, Jiuh-Biing & Li, Deng-Feng & Dai, Yong-Wu, 2021. "Collaborative profit allocation schemes for logistics enterprise coalitions with incomplete information," Omega, Elsevier, vol. 101(C).

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    More about this item

    Keywords

    Matching; Mechanism design; Non-transferable Utility;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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