Download or read book Dynamic Matching with Transfers written by Tyler Maxey and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: I study a two-sided market of dynamic matching with sequential arrivals. Agents trade off waiting to match with a more desirable agent with immediately matching with a less desirable agent. I study the consequences of transfer availability for two priority orders: first-in-first-out (FIFO) and last-in-first-out (LIFO). For FIFO, welfare is weakly greater with transfers than without. For LIFO, there is a range of waiting costs such that welfare is weakly lower with transfers than without. Even in the limit as waiting costs go to zero, the equilibrium welfare for FIFO with transfers remains strictly lower than that of the social optimum. Thus, unlike in a static matching setting, transfers in my dynamic matching setting do not generate utilitarian efficient outcomes.