Markets sometimes unravel, with offers becoming inefficiently early. Often this is attributed to competition arising from an imbalance of demand and supply, typically excess demand for workers. However this presents a puzzle, since unraveling can only occur when firms are willing to make early...

Experiments with human subjects have been widely used to test hypotheses derived from economic theory and to provide stylized facts about empirical regularities in economics. One of the clear implications of experimental economics is that the efficiency and distributional properties of market...