Working Paper: NBER ID: w16556
Authors: Alvin E. Roth
Abstract: 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.
Keywords: No keywords provided
JEL Codes: D02; D43
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| unraveling in the labor market for new lawyers (J44) | inefficiencies (D61) |
| early hiring practices in law firms (M51) | inefficiencies (D61) |
| marketplace institutions (D47) | restoration of efficiency (D61) |
| unraveling (Y60) | inefficiencies in the market for gastroenterology fellows (I11) |
| unraveling in the market for postseason college football bowls (Z21) | inefficient matchups (C78) |