Marketplace Institutions Related to the Timing of Transactions
This note describes the unraveling of transaction dates in several markets, including the labor markets for new lawyers hired by large law firms and for gastroenterology fellows, and the market for post-season college football bowls. Together these will illustrate that unraveling can occur in markets with competitive prices, that it can result in substantial inefficiencies, and that marketplace institutions play a role in restoring efficiency. I'll conclude with open questions about the role of marketplace institutions and the timing of transactions.
I gratefully acknowledge helpful comments from Christine Jolls and Muriel Niederle, and support from the National Science Foundation. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.