We consider a private information replica of the dynamic matching and bargaining model of Mortensen and Wright (2002). We find that private information typically deters entry. But, the welfare can actually be higher under private information.

We provide a full dynamic analysis of a continuous-time variant of Rubinstein and Wolinsky (1985) matching and bargaining model with unbalanced flows of buyers and sellers. The focus is on the price limit as the frictions of search are removed. It is found that a necessary and sufficient...