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Persistent link: https://www.econbiz.de/10001704975
Consider Becker's (1973) classic static matching model, with output a stochastic function of unobserved types. Assume symmetric incomplete information about types, and thus commonly observed Bayesian posteriors. Matching is then assortative in these Bayesian 'reputations' if the expected output...
Persistent link: https://www.econbiz.de/10014122760
Persistent link: https://www.econbiz.de/10003468440
Consider Becker's 1973 classic matching model, with unobserved fixed types and stochastic publicly observed output. If types are complementary, then matching is assortative in the known Bayesian posteriors (the 'reputations'). We discover a robust failure of Becker's result in the simplest...
Persistent link: https://www.econbiz.de/10014071269