Matching and Information Design in Marketplaces
30 Pages Posted: 13 Dec 2022 Last revised: 3 Feb 2023
Date Written: November 22, 2022
Abstract
There are many markets that are networked in these sense that not all consumers have access to (or are aware of) all products, while, at the same time, firms have some information about consumers and can distinguish some consumers from some others (for example, in online markets through cookies). With unit demand and price-setting firms we give a complete characterization of all welfare outcomes achievable in equilibrium (for arbitrary buyer-seller networks and arbitrary information structures), as well as the designs (networks and information structures) which implement them.
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