Anderson, Axel; Smith, Lones - Cowles Foundation for Research in Economics, Yale University - 2006
Consider Becker's classic 1963 matching model, with unobserved fixed types and stochastic publicly observed output. If types are complementary, then matching is assortative in the known Bayesian posteriors (the 'reputations'). We discover a robust failure of Becker's result in the simplest...