Markets with pairwise meetings : when frictions favour information revelation

We study information revelation in markets with pairwise meetings. We focus on the one-sided case and perform a dynamic analysis of a constant entry flow model. The same question has been studied in an identical framework in Serrano and Yosha (1993) but they limit their analysis to the stationary steady states. We show that there is a dramatical loss when restricting the analysis of a constant entry flow model to stationary steady states. We establish the existence of a limit cycle. Our second main result is that, in some non pathological cases, there exists an equilibrium such that information revelation is worse when frictions are weaker.