Authors
Deniz Dizdar
Publication date
2020/6/8
Journal
Available at SSRN 3632390
Description
We solve an open problem pertaining to the relationship between competitive and non-cooperative models of pre-match investment. We study an incomplete information version of Peters and Siow's (2002) model of competing pre-marital investments and NTU matching, with finitely many agents and iid types. Our main result is a precise characterization of side-symmetric, strictly monotone Bayes-Nash equilibrium (SSMBNE) behavior when the market grows large and the empirical type distributions converge to those of an unbalanced continuum economy à la Peters and Siow (2002).