Pricing and investments in matching markets

Artikel

Different markets are cleared by different types of prices—seller-specific prices that are uniform across buyers in some markets, and personalized prices tailored to the buyer in others. We examine a setting in which buyers and sellers make investments before matching in a competitive market. We introduce the notion of premuneration values—the values to the transacting agents prior to any transfers— created by a buyer-seller match. Personalized price equilibrium outcomes are independent of premuneration values and exhibit inefficiencies only in the event of “coordination failures,” while uniform-price equilibria depend on premuneration values and in general feature inefficient investments even without coordination failures. There is thus a trade-off between the costs of personalizing prices and the inefficient investments under uniform prices. We characterize the premuneration values under which uniform-price equilibria similarly exhibit inefficiencies only in the event of coordination failures.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 8 ; Year: 2013 ; Issue: 2 ; Pages: 535-590 ; New Haven, CT: The Econometric Society

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Bargaining Theory; Matching Theory ; Market Structure, Pricing, and Design: General ; Market Structure, Pricing, and Design: Perfect Competition ; General Equilibrium and Disequilibrium: General ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
• Thema: Directed search ; matching ; premuneration value ; prematch investments ; search

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Mailath, George J. ; Samuelson, Larry ; Postlewaite, Andrew
• Ereignis: Veröffentlichung
• (wer): The Econometric Society
• (wo): New Haven, CT
• (wann): 2013

Weitere Informationen

• DOI: doi:10.3982/TE1189
• Handle: http://hdl.handle.net/10419/150200
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ