Unraveling Results from Comparable Demand and Supply: An Experimental Investigation / Muriel Niederle, Alvin E. Roth, M. Utku Ünver.

Format:

Book

Author/Creator:

Niederle, Muriel.

Contributor:

National Bureau of Economic Research.

Roth, Alvin E.

Ünver, M. Utku.

Series:

Working Paper Series (National Bureau of Economic Research) no. w15006.

NBER working paper series no. w15006

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Unraveling Results from Comparable Demand and Supply

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2009.

Summary:

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.

Notes:

Print version record

May 2009.