Search, matching, and dating apps: designed to be deleted, or designed to be repeated?

• Department of Economics

This event features a discussion by Daniel Bird (Tel Aviv University).

Should an online matching platform utilize new technologies that enable faster search and better screening of proposed matches? On the one hand, the platform wishes to provide high-quality search and matching services in order to become more attractive to its users; on the other hand, high-quality matches reduce both the duration of search and the likelihood of repeat search, and can therefore reduce revenue from repeated use and advertising exposure. We compare the profits of a matching platform under technologies that differ in search speed and the screening of proposed matches. We find that better technology raises profit when the platform relies mainly on fees paid by users, but can lower profit when advertising revenue is sufficiently important, creating an incentive not to use improved matching capabilities fully.

Co-authors: Yair Antler, Daniel Fershtman.