Pre-match investment with frictions

B-Tier
Journal: Games and Economic Behavior
Year: 2010
Volume: 68
Issue: 1
Pages: 23-34

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

The paper explores an environment in which agents are motivated to make unproductive investments with the sole aim of improving their matching opportunities. In contrast to existing work, I add frictions by allowing the investment to be imperfectly observed. The analysis allows for a deeper understanding of the trade-off inherent in related models: investments waste resources but facilitates more efficient matching patterns. I show that greater frictions i) do not always lead to inferior matching patterns, and ii) can force the economy into to a Pareto preferred equilibrium.

Technical Details

RePEc Handle
repec:eee:gamebe:v:68:y:2010:i:1:p:23-34
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24