Two-sided search, marriages, and matchmakers

This article analyzes the provision of matching services in a model of two- sided search. Agents belong to two heterogeneous populations and are distri buted on [0, 1]. Their utility is equal to the index of their mate. In a se arch equilibrium agents form subintervals and are only matched to agents in side their class. Marriage brokers match agents according to a centralized procedure. If the matchmaker charges a uniform participation fee, only agen ts of higher quality participate in the centralized procedure. If the match maker charges a commission on the matching surplus, only agents of lower qu ality go to the intermediary.