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Information Disclosure and Unraveling in Matching Markets

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  • Michael Ostrovsky
  • Michael Schwarz

Abstract

This paper explores information disclosure in matching markets, e.g., the informativeness of transcripts given out by universities. We show that the same, "benchmark," amount of information is disclosed in essentially all equilibria. We then demonstrate that if universities disclose the benchmark amount of information, students and employers will not find it profitable to contract early; if they disclose more, unraveling will occur.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13766.

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Date of creation: Jan 2008
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Publication status: published as Michael Ostrovsky & Michael Schwarz, 2010. "Information Disclosure and Unraveling in Matching Markets," American Economic Journal: Microeconomics, American Economic Association, vol. 2(2), pages 34-63, May.
Handle: RePEc:nbr:nberwo:13766

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Cited by:
  1. George J. Mailath & Andrew Postlewaite & Larry Samuelson, 2011. "Pricing and Investments in Matching Markets," Levine's Working Paper Archive 786969000000000162, David K. Levine.
  2. George J. Mailath & Andrew Postlewaite & Larry Samuelson, 2013. "Premuneration Values and Investments in Matching Markets," PIER Working Paper Archive 13-060, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  3. Alexey Kushnir & Alexandru Nichifor, 2014. "Targeted vs. collective information sharing in networks," ECON - Working Papers 152, Department of Economics - University of Zurich.
  4. Raphael Boleslavsky & Christopher Cotton, 2012. "Grade Inflation and Education Quality," Working Papers 2012-2, University of Miami, Department of Economics.
  5. Itay Fainmesser, 2010. "Social Networks and Unraveling in Labor Markets," Working Papers 2010-15, Brown University, Department of Economics.
  6. Rick Harbaugh & Eric Rasmusen, 2012. "Coarse Grades: Informing the Public by Withholding Information," Working Papers 2012-06, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  7. Benndorf, Volker & Kübler, Dorothea & Normann, Hans-Theo, 2013. "Privacy concerns, voluntary disclosure of information, and unraveling: An experiment," Discussion Papers, Research Unit: Market Behavior SP II 2013-208, Social Science Research Center Berlin (WZB).
  8. Emir Kamenica & Matthew Gentzkow, 2009. "Bayesian Persuasion," NajEcon Working Paper Reviews 814577000000000369, www.najecon.org.
  9. Ehlers, Tim & Schwager, Robert, 2012. "Honest Grading, Grade Inflation and Reputation," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62051, Verein für Socialpolitik / German Economic Association.
  10. Ennio Bilancini & Leonardo Boncinelli, 2014. "Disclosure of information in matching markets with non-transferable utility," Center for Economic Research (RECent) 094, University of Modena and Reggio E., Dept. of Economics.
  11. Andrew F. Daughety & Jennifer F. Reinganum, 2010. "Public Goods, Social Pressure, and the Choice between Privacy and Publicity," American Economic Journal: Microeconomics, American Economic Association, vol. 2(2), pages 191-221, May.
  12. Anton Kolotilin, 2013. "Optimal Information Disclosure: Quantity vs. Quality," Discussion Papers 2013-19, School of Economics, The University of New South Wales.
  13. Emir Kamenica & Matthew Gentzkow, 2011. "Bayesian Persuasion," American Economic Review, American Economic Association, vol. 101(6), pages 2590-2615, October.
  14. Schwager, Robert, 2013. "Majority Vote on Educational Standards," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79971, Verein für Socialpolitik / German Economic Association.

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