subprime auto lending calibrated to Einav, Jenkins and Levin (2012), realistic levels of competition among lenders generate a … significant oversupply of credit, implying greater market power is desirable. We build a model of symmetric imperfect competition …-theoretic reasoning to provide a general analysis of the interaction between selection and imperfect competition. We use the same logic to …

symmetric imperfect competition in selection markets that parameterizes the degree of market power and selection. We use … social surplus. Conversely, in a calibrated model of subprime auto lending, realistic levels of competition can generate an …