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The role of private information in dynamic matching and bargaining: Can it be good for efficiency?

By Artyom Shneyerov and Adam Chi Leung Wong


We consider a private information replica of the dynamic matching and bargaining model of Mortensen and Wright (2002). We find that private information typically deters entry. But, the welfare can actually be higher under private information.Markets with search frictions Matching and bargaining Two-sided incomplete information

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