We empirically examine on-exchange hidden liquidity in the context of informed trading, pricing efficiency, and trading costs. Using a number of proxies for informativeness and a number of different specifications, we find that when an on-exchange option to hide orders exists, traders prefer to...

We study how to reduce congestion in two-sided matching markets with private preferences. We measure congestion by the number of bits of information that agents must (i) learn about their own preferences, and (ii) communicate with others before obtaining their final match. Previous results by...