Gu, Xinhua; Rao Sahib, Padma - Faculteit Economie en Bedrijfskunde, Rijksuniversiteit … - 2002
This paper develops a two-sided search-matching model with imperfectly observed types and learning. Since agents do not observe one another’s type accurately, they first engage in a probationary partnership to learn one another’s true type. Using the metaphor ofpremarital cohabitation and...