Optimal Delegation in Markets for Matching with Signaling
Theoretical Economics
2023-03-17 v1
Abstract
This paper studies a delegation problem faced by the planner who wants to regulate receivers' reaction choices in markets for matching between receivers and senders with signaling. We provide a noble insight into the planner's willingness to delegate and the design of optimal (reaction) interval delegation as a solution to the planner's general mechanism design problem. The relative heterogeneity of receiver types and the productivity of the sender' signal are crucial in deriving optimal interval delegation in the presence of the trade-off between matching efficiency and signaling costs.
Keywords
Cite
@article{arxiv.2303.09415,
title = {Optimal Delegation in Markets for Matching with Signaling},
author = {Seungjin Han and Alex Sam and Youngki Shin},
journal= {arXiv preprint arXiv:2303.09415},
year = {2023}
}
Comments
52 pages, 8 figures. arXiv admin note: substantial text overlap with arXiv:2109.03370