We present a theoretical explanation of inefficient early matching in matching markets. Our explanation is based on …

When goods are substitutes, the Vickrey outcome is in the core and yields competitive seller revenue. In contrast, with … complements, the Vickrey outcome is efficient but not necessarily in the core and revenue can be low. Non-core outcomes may be … perceived as unfair since there are bidders willing to pay more than the winners' payments. Moreover, non-core outcomes render …

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 …