Pré-Publication, Document De Travail Année : 2022

Matching with Recall

Yann Bramoullé
Brian Rogers
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Résumé

We study a two-period one-to-one dynamic matching environment in which agents meet randomly and decide whether to match early or defer. Crucially, agents can match with either partner in the second period. This "recall" captures situations where, e.g., a firm and worker can conduct additional interviews before contracting. Recall has a profound impact on incentives and on aggregate outcomes. We show that the likelihood to match early is nonmonotonic in type: early matches occur between the good-but-not-best agents. The option value provided by the first-period partner provides a force against unraveling, so that deferrals occur under small participation costs.

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Dates et versions

halshs-03602169 , version 1 (08-03-2022)

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  • HAL Id : halshs-03602169 , version 1

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Yann Bramoullé, Brian Rogers, Erdem Yenerdag. Matching with Recall. 2022. ⟨halshs-03602169⟩
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