Skip to main content

STICERD Economic Theory Seminars & STICERD Economic Theory Seminars

Efficient Investment and Search in Matching Markets

Michael Richter (Royal Holloway), joint with Alp Atakan and Matan Tsur

Thursday 07 October 2021 15:30 - 17:00

Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, in-person seminars are open to the public.

Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.


About this event

We study a two-sided search-and-matching model in which agents invest before entry. In every period, agents incur an additive search cost, pairs meet at random and bargain over prices. Inefficiencies can be caused by a potential hold-up problem and mismatches between skills. We make three major points. First, despite the potential inefficiencies, a second welfare theorem holds: the constrained efficient allocation is an equilibrium. Second, we establish a general assortativity result, provide conditions for uniqueness, and characterize the outcomes in symmetric two-skill economies. Third, we show that the efficient outcome can be discriminatory in the marriage market.

Economic Theory Seminars are held on Thursdays in term time at 15:30-17:00, ONLINE or ONLINE AND IN PERSON at the same time.

Seminar organisers: Dr Andrew Ellis and Dr Christopher Sandmann.

For further information please contact Annie-Rose Nicholas by email: a.nicholas1@lse.ac.uk.

Please use this link to subscribe or unsubscribe to the Economic Theory seminars mailing list (etheory).

Economic Theory Seminars are held on Thursdays in term time at 15:30-17:00, ONLINE or ONLINE AND IN PERSON at the same time.

Seminar organisers: Dr Andrew Ellis and Dr Christopher Sandmann.

For further information please contact Annie-Rose Nicholas by email: a.nicholas1@lse.ac.uk.

Please use this link to subscribe or unsubscribe to the Economic Theory seminars mailing list (etheory).