Casella, Alessandra; Rauch, James E - C.E.P.R. Discussion Papers - 1997
generated through bilateral matching of agents spanning a spectrum of types. Domestic matching is perfect – every trader knows … the type of all others and can approach any, but international matching is random – every trader lacks the information to … choose a partner’s type. Group ties, however, allow perfect matching abroad to a minority of individuals who have access to …