We study centralized many-to-many matching in markets where agents have private information about (vertical …) characteristics that determine match values. Our analysis reveals how matching patterns reflect cross-subsidization between sides … compensated by the gains from agents-consumers. We show how such cross-subsidization can be achieved through matching rules that …

We study centralized many-to-many matching in markets where agents have private information about (vertical …) characteristics that determine match values. Our analysis reveals how matching patterns reflect cross-subsidization between sides … compensated by the gains from agents-consumers. We show how such cross-subsidization can be achieved through matching rules that …

Recent technologies permit matching intermediaries to engage in unprecedented levels of targeting. Yet, regulators fear … that the welfare gains of such targeting be hindered by the high degree of price customization practiced by matching … intermediaries, whereby prices finely depend on the characteristics of the matching partners. To shed light on this debate, we …