In their seminal paper Grossman and Shapiro (1984) find that informative advertising is socially excessive in an oligopoly (entry is also socially excessive). However, to derive the results, it was assumed that all consumers receive at least one ad, i.e., advertising does not have a demand...

This paper develops a theoretical search model of apartment swap in the rental market. Using random matching mechanism, we mimic the informal Swedish swap market, which is characterized by strong rent control and dominant ownership of the apartments by municipalities. Our proposed framework...