This article develops a search-theoretic model of financial intermediation to study the efficiency condition of the … banking sector. Competitive financial intermediation is determined by the search decisions of both households (to find … by banks or are bargained under a specific Hosios (1990) condition, which addresses the hold-up problem induced by search …

resides in between the random matching and the directed search outcomes. The equilibrium that emerges from this middle ground …We present a theory of targeted search, where people with a finite information processing capacity search for a match … is inefficient relative to the constrained Pareto allocation. Our theory encompasses the outcomes of the random matching …

This paper shows that all perfect Bayesian equilibria of a decentralized dynamic matching market with two …. Agents engage in costly search and meet randomly. The terms of trade are determined through bilateral bargaining between … costs of search become small, all equilibria of the market game converge to perfectly competitive equilibria. …

We investigate a canonical search-theoretic model without entry. Two agents are randomly matched with a long side being …

data from a growing online platform that matches travelers and hosts to study matching and transaction costs on online … platforms. I show that the matching probability for guests has increased by 18% over a span of two years on the platform. I then … show that the increase in efficiency holds even when controlling for the search intensity of guests, the change in the …

We prove existence of steady-state equilibrium in a class of matching modelswith search frictions. …

We study bilateral matching under private information about agents' characteristics. Assortative matching is the only … equilibrium outcome in the absence of private information. When an information friction is present, the matching process can be … signaling device. If success in matching is observed, other agents can imitate the signal. Thus, for fashion to be useful, it …