IDEAS home Printed from https://ideas.repec.org/p/smu/ecowpa/2006.html

Market Screening with Limited Records

Author

Listed:
  • Ayca Kaya

    (University of Miami)

  • Santanu Roy

    (Southern Methodist University)

Abstract

Markets differ in the availability of past trading records of their participants. In a repeated sale model with adverse selection, we study the impact of the availability of such records on trading outcomes. We consider regimes varying with respect to the length of the available records. We characterize a class of equilibria in which the record length has direct welfare implications via the market’s need to re-screen the seller, as well as indirect implications via the low quality seller’s incentives to mimic the high quality seller. As the record length increases, the market needs to re-screen less frequently, which improves efficiency. In turn, less frequent screening makes mimicking more attractive and limits the market’s ability to learn. These considerations lead to a non-monotonic relationship between record length and overall gains from trade.

Suggested Citation

  • Ayca Kaya & Santanu Roy, 2020. "Market Screening with Limited Records," Departmental Working Papers 2006, Southern Methodist University, Department of Economics.
    • Handle: RePEc:smu:ecowpa:2006
    as

    Download full text from publisher

    File URL: ftp://ftp1.economics.smu.edu/WorkingPapers/2020/ROY/ROY-2020-05.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Harry Pei, 2020. "Reputation Building under Observational Learning," Papers 2006.08068, arXiv.org, revised Nov 2020.
    2. Raphael Boleslavsky & Silvana Krasteva, 2025. "Limits of Disclosure in Search Markets," Papers 2506.06319, arXiv.org, revised Jun 2025.
    3. Monte, Daniel & Pinheiro, Roberto, 2025. "Costly information intermediation: Quality vs. Spillovers," Journal of Economic Behavior & Organization, Elsevier, vol. 239(C).
    4. Barsanetti, Bruno & Camargo, Braz, 2022. "Signaling in dynamic markets with adverse selection," Journal of Economic Theory, Elsevier, vol. 206(C).
    5. Harry Pei, 2022. "Reputation Effects under Short Memories," Papers 2207.02744, arXiv.org, revised Jan 2023.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:smu:ecowpa:2006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ömer Özak (email available below). General contact details of provider: http://www.smu.edu/economics .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.