Kim, Jaehong; Li, Mengling; Xu, Menghan - In: Theoretical economics : TE ; an open access journal in … 20 (2025) 3, pp. 1081-1134
This paper examines the welfare implications of priority service in a frictional search environment with heterogeneous outside options. Priority search facilitates expedited matching with public options in the market by charging a service premium. Our main analysis demonstrates that a...