Pandora's Auctions: Dynamic Matching with Unknown Preferences

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 5
Pages: 186-90

Authors (2)

Daniel Fershtman (not in RePEc) Alessandro Pavan (Northwestern University)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Matching theory typically assumes that agents know their values for possible partners and confines attention to settings in which matching is either static, or driven by population dynamics. In many environments of interest, instead, dynamics originate in the agents learning their preferences through interactions with other agents. In this short paper, we illustrate how platforms can use appropriately designed auctions to account for the joint value of experimentation and cross-subsidization in dynamic matching markets. The model is a stylized version of the general one in Fershtman and Pavan (2016).

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:5:p:186-90
Journal Field
General
Author Count
2
Added to Database
2026-01-28