%0 Journal Article
%T Unraveling Results from Comparable Demand and Supply: An Experimental Investigation
%A Muriel Niederle
%A Alvin E. Roth
%A M. Utku ¨¹nver
%J Games
%D 2013
%I MDPI AG
%R 10.3390/g4020243
%X Markets sometimes unravel, with offers becoming inefficiently early. Often this is attributed to competition arising from an imbalance of demand and supply, typically excess demand for workers. However this presents a puzzle, since unraveling can only occur when firms are willing to make early offers and workers are willing to accept them. We present a model and experiment in which workers¡¯ quality becomes known only in the late part of the market. However, in equilibrium, matching can occur (inefficiently) early only when there is comparable demand and supply: a surplus of applicants, but a shortage of high quality applicants.
%K Two-side Matching
%K market design
%K unraveling
%K experiments
%U http://www.mdpi.com/2073-4336/4/2/243