Exploding offers are common in unraveled markets. These offers are both early and short-lived. So not only are firms making offers before they have as much information as they’d like about how candidates might perform in school, but the candidates themselves are confronted with accepting or rejecting an offer before they know what other offers might become available. To put it another way, exploding offers make markets thin as well as early, and so participants are deprived of information about both the quality of matches and what kind of matches the market might offer. In that situation,
...more
