This paper analyzes the problem of matching two heterogeneous populations, e.g., men and women. If the payoff from a … match exhibits complementarities, it is well known that absent any friction positive assortative matching is optimal (PAM …). Coarse matching refers to a situation in which the populations into a finite number of classes, then randomly matched within …

naive inferences. -- signalling ; naive beliefs ; public goods …

The dynamics of incentive contracts under asymmetric information have long been an important topic in economics. We … that after the first period the principal designs a second contract, taking the information available about the state of … the flow of information; and second, the principal attempts to dampen the first period signal to reduce up-front payments …

quality goods are able to use prices as a signaling device and this enables them to trade. However, not all sellers of high …

experiments. However, traders' acquisition cost of information has typically been ignored. Results from a laboratory experiment … involving six treatments varying the cost of acquiring signals of an asset's value suggest that when information is costly …, markets do not succeed in aggregating it. At an individual level, having information improves trading performance, but not …

), Miyazaki (1977) and Spence (1978). Consumers have private information on their risk profile and the frequency with which they …