This paper studies pre-match investment competition with upper and lower bounds on feasible transfers to sellers in a general signaling environment, where the types of buyers and sellers are private information and the surplus may depend on both types and investments. Bounded transfers create...

This paper develops a fully-solvable equilibrium matching model of incomplete information with early skill acquisition to provide general theoretical insights into fast rising top income inequality observed in the United States. Fast rising top income inequality is endogenously accommodated: In...