This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search … underinvestment on both sides of the market. But when market frictions become negligible, the equilibrium investment levels tend … towards the first-best. -- Holdup Problem ; Matching Market ; Investments …

make investments before matching in a competitive market. We introduce the notion of premuneration values - the values to …

make investments before matching in a competitive market. We introduce the notion of premuneration values -- the values to …

surplus in the absence of interagent transfers. Most of the work in the large bargaining-and matching literature ignores this …

more structured model that is sufficiently tractable to analyze the nature of the investment inefficiencies. We provide … conditions under which investment is inefficiently high or low and conditions under which changes in the pretransfer ownership … market affects investment efficiency …

more structured model that is sufficiently tractable to analyze the nature of the investment inefficiencies. We provide … conditions under which investment is inefficiently high or low and conditions under which changes in the pretransfer ownership … market affects investment efficiency …

investment timings. Players choose when to invest in a nonrival project with uncertain returns. The earliest investor bears the … costs of investment and all players learn whether the project is of good or bad quality. Informational externalities create … free-riding incentives resulting in strategic delays in investment timings. Our theoretical analysis suggests that …

optimal public policy, defined by the time path of investment and consumption. In each period, a legislature with … presentatives of each of n districts bargain over the current period's endowment for investment in the public good and transfers to … investment in the public good and less pork. We examine the theoretical equilibrium predictions by conducting a laboratory …