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Information Disclosure and Unraveling in Matching Markets

Author

Listed:
  • Ostrovsky, Michael

    (Stanford U)

  • Schwarz, Michael

    (Yahoo! Research)

Abstract

This paper explores information disclosure in matching markets, e.g., the informativeness of transcripts given out by universities. We show that the same, "benchmark," amount of information is disclosed in essentially all equilibria. We then demonstrate that if universities disclose the benchmark amount of information, students and employers will not find it profitable to contract early; if they disclose more, unraveling will occur.

Suggested Citation

  • Ostrovsky, Michael & Schwarz, Michael, 2007. "Information Disclosure and Unraveling in Matching Markets," Research Papers 1965, Stanford University, Graduate School of Business.
    • Handle: RePEc:ecl:stabus:1965
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I2 - Health, Education, and Welfare - - Education
    • J0 - Labor and Demographic Economics - - General

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