Search, Recall and Scale: Firms in Frictional Matching Markets

In frictional matching markets, the information which an individual gathers in their pri- vate search for trading opportunities may be valued by other individuals. Socially, there is insucient information gathering and transmission from private search in frictional matching markets. This paper studies the role of rms which act as intermediaries in internalizing this informational externality. Recall and scale, which are irrelevant in private search, are critical to the existence of