Cream Skimming and Information Design in Matching Markets

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2019
Volume: 11
Issue: 2
Pages: 250-76

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Short-lived buyers arrive to a platform over time and randomly match with sellers. The sellers stay at the platform and decide whether to accept incoming requests. The platform designs what buyer information the sellers observe before deciding to form a match. We show full information disclosure leads to a market failure because of excessive rejections by the sellers. If sellers are homogeneous, then coarse information policies are able to restore efficiency. If sellers are heterogeneous, then simple censorship policies are often constrained efficient as shown by a method of calculus of variations.

Technical Details

RePEc Handle
repec:aea:aejmic:v:11:y:2019:i:2:p:250-76
Journal Field
General
Author Count
2
Added to Database
2026-01-29