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The paper investigates price formation in a decentralized market with random matching. Agents are assumed to have … to be mitigated rather than exacerbated by friction. -- random matching ; price stickiness ; social preferences ; history …
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Since no stable matching mechanism can induce truth-telling as a dominant strategy for all participants, there is often … room in matching markets for strategic misrepresentation (Roth [25]). In this paper we study a natural form of strategic …
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