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Learning about one’s own type in two-sided search

  • Akiko Maruyama

    (National Graduate Institute for Policy Studies)

This paper is an analysis of a two-sided search model in which agents are vertically heterogeneous and some agents do not know their own types. Agents who do not know their own types update their beliefs about their own types through the offers or rejections that they receive from others. In the belief-updating process, an agent who is unsure of his or her own type frequently behaves as an over- or underconfident agent. In this paper, we show that this apparent over- or underconfidence influences both on the individual’s and other agents’ matching behaviors. We show, especially, that the apparent overconfidence of some agents prevents the lowest-type agents from matching in an equilibrium.

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Paper provided by National Graduate Institute for Policy Studies in its series GRIPS Discussion Papers with number 10-26.

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Length: 42 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:ngi:dpaper:10-26
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  1. Jean Pierre Benoit & Juan Dubra, 2008. "Overconfidence?," Levine's Working Paper Archive 122247000000002142, David K. Levine.
  2. Lu�s Santos-Pinto & Joel Sobel, 2005. "A Model of Positive Self-Image in Subjective Assessments," American Economic Review, American Economic Association, vol. 95(5), pages 1386-1402, December.
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