Upcoming Webinars

The Importance of Being Earnest (in Search Markets)

Brendan Daley and Jacob Sagi

presented by Jacon Sagi

April 2, 2026
Seminar: 12:00 pm - 1:00 pm ET (9am PT, 5pm BST, 6pm CEST).
Virtual Coffee Break: 1:00 pm - 1:30 pm ET

Abstract: In some markets for highly illiquid assets most transactions are mediated through auctions. In others it is through brokers who hold no inventory. Why? We explore this with a novel framework of decentralized markets for large indivisible assets where the central friction is buyers' difficulty to credibly convey their private valuation. We show this friction can be costly to sellers and identify a novel role for brokers as certifiers of their own clients' earnest intentions. When sellers can choose between an auction and broker-mediation, the latter dominates whenever markets are not tight and/or when buyers' private valuations are sufficiently diverse.