Header

UZH-Logo

Maintenance Infos

Unraveling over time


Ambuehl, Sandro; Groves, Vivienne (2020). Unraveling over time. Games and Economic Behavior, 121:252-264.

Abstract

Unraveling, the excessively early matching of future workers to employers, leads to hiring decisions based on severely incomplete information. We provide a model of unraveling in a one-to-one matching market without transfers. Its distinguishing feature is the gradual arrival of information about students that occurs over an extended period of time during which matches can be made. In equilibrium, the market spreads thinly over that period and employers' attractiveness to students is uncorrelated with their worker's productivity. Our model connects previous, seemingly unrelated models of unraveling and it highlights the implications of the two-period assumption on which they rely. Our setting permits the analysis of information timing policies. These are effective only if they provide a sudden and sufficiently large surge in information. Our main application is in the market for clerks to U.S. Federal Appellate Courts, a significant input into the efficiency of the justice system.

Abstract

Unraveling, the excessively early matching of future workers to employers, leads to hiring decisions based on severely incomplete information. We provide a model of unraveling in a one-to-one matching market without transfers. Its distinguishing feature is the gradual arrival of information about students that occurs over an extended period of time during which matches can be made. In equilibrium, the market spreads thinly over that period and employers' attractiveness to students is uncorrelated with their worker's productivity. Our model connects previous, seemingly unrelated models of unraveling and it highlights the implications of the two-period assumption on which they rely. Our setting permits the analysis of information timing policies. These are effective only if they provide a sudden and sufficiently large surge in information. Our main application is in the market for clerks to U.S. Federal Appellate Courts, a significant input into the efficiency of the justice system.

Statistics

Citations

Altmetrics

Downloads

1 download since deposited on 16 Mar 2020
1 download since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Finance
Social Sciences & Humanities > Economics and Econometrics
Uncontrolled Keywords:Economics and econometrics, finance, unraveling, two-sided matching, continuous time game, law clerks
Language:English
Date:May 2020
Deposited On:16 Mar 2020 10:25
Last Modified:22 Apr 2020 23:19
Publisher:Elsevier
ISSN:0899-8256
OA Status:Closed
Publisher DOI:https://doi.org/10.1016/j.geb.2020.02.009

Download

Closed Access: Download allowed only for UZH members

Content: Accepted Version
Language: English
Filetype: PDF - Registered users only until May 2023
Size: 846kB
View at publisher
Embargo till: 2023-05
Content: Published Version
Language: English
Filetype: PDF - Registered users only
Size: 527kB