|
|
|
|
||||
|
||||
Unraveling Results from Comparable Demand and Supply: An Experimental InvestigationMuriel NiederleStanford University - Department of Economics; National Bureau of Economic Research (NBER) Alvin E. RothHBS Negotiations, Organizations and Markets Unit; National Bureau of Economic Research (NBER) M. Utku ÜnverBoston College - Department of Economics May 2009 NBER Working Paper No. w15006 Abstract: Markets sometimes unravel, with offers becoming inefficiently early. Often this is attributed to competition arising from an imbalance of demand and supply, typically excess demand for workers. However this presents a puzzle, since unraveling can only occur when firms are willing to make early offers and workers are willing to accept them. We present a model and experiment in which workers' quality becomes known only in the late part of the market. However, in equilibrium, matching can occur (inefficiently) early only when there is comparable demand and supply: a surplus of applicants, but a shortage of high quality applicants.
Number of Pages in PDF File: 47 working papers seriesDate posted: June 1, 2009Suggested CitationContact Information
|
|
||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo7 in 0.515 seconds
