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- W2007459710 abstract "This paper studies the properties of the steady state equilibrium in a bilateral matching market with ex ante investments at the market entry stage. Investment incentives depend on search frictions because both parties in a match are partially locked-in when they bargain over the joint surplus from their sunk investments. The associated holdup problem is more important for the long side of the market. In the extreme case of perfectly substitutable investments only the agents on the short side make investments. When market frictions become negligible, the market equilibrium approaches the Walrasian outcome." @default.
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- W2007459710 date "2013-08-01" @default.
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- W2007459710 title "Investments and the holdup problem in a matching market" @default.
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- W2007459710 doi "https://doi.org/10.1016/j.jmateco.2013.04.008" @default.
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