This paper studies a principal-agent relation in which the principal's private information about the agent's effort … and not on the public signal. Nonetheless, public information is valuable as it facilitates truthful subjective evaluation …

This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search … towards the first-best. -- Holdup Problem ; Matching Market ; Investments …

We investigate the welfare effect of increasing competition in an anonymous two-sided matching market, where matched … pairs play an infinitely repeated Prisoner's Dilemma. Higher matching efficiency is usually considered detrimental as it … creates stronger incentives for defection. We point out, however, that a reduction in matching frictions also increases …

We investigate the welfare effect of increasing competition in an anonymous two-sided matching market, where matched … pairs play an infinitely repeated Prisoner's Dilemma. Higher matching efficiency is usually considered detrimental as it … creates stronger incentives for defection. We point out, however, that a reduction in matching frictions also increases …

' productivities. We characterize the trade-offs between signaling by workers and costly information acquisition by firms. Information …In Spence's (1973) signaling by education model and in many of its extensions, firms can only infer workers … workers have low productivity. Our analysis applies also to other signaling problems, e.g. the financial structure of firms …

observed by the incumbent and some fraction of informed consumers. This leads to price signalling rivalry between the … belief refinement", only a two-sided separating equilibrium can exist and prices are identical to the full information … outcome. -- Quality uncertainty ; Signalling ; Oligopoly …