STICERD Work in Progress Seminars
Patrick Blanchenay (Department of Economics, LSE)
Friday 03 May 2013 13:00 - 14:00
Due to the onging coronavirus outbreak, many of our seminars and public events this year will continue as online seminars. Please check our website listings and Twitter feed @STICERD_LSE for updates.
About this event
I present a standard model of supermodular matching, in which individuals can purchase a costly signal ('club fee') in order to be matched with a subset of the population. In such a model, there are generically an infinite number of sorting equilibria. I investigate how imposing that the median member of the club decides on the fee, can help reduce the number of equilibria. Preliminary results suggest that the strength of the supermodularity plays a critical role in the equilibria that can survive this requirement.