Markets with search frictions, matching and bargaining, two-sided incomplete information
We consider a private information replica of the dynamic matching and bargaining model of Mortensen and Wright (2002). We find that private information typically deters entry. But, the welfare can actually be higher under private information.
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Accepted Author Manuscript
Shneyerov, A., & Wong, A. C. L. (2011). The role of private information in dynamic matching and bargaining: Can it be good for efficiency? Economics Letters, 112(1), 128-131. doi: 10.1016/j.econlet.2011.03.016