properties of the equilibrium investment behavior. The bilateral external benefits induce an investment multiplier effect. This … how it interacts with other important factors such as the costs of investment and the signaling incentives induced by …

This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search … underinvestment on both sides of the market. But when market frictions become negligible, the equilibrium investment levels tend … towards the first-best. -- Holdup Problem ; Matching Market ; Investments …