About Me

I am an assitant professor at School of Economics and Wang Yanan Institute for Studies of Economics, Xiamen University. Welcome to my personal website.
Curriculum Vitae

Research Interest

  • Industrial Organization
  • Applied Game Theory
  • Financial Economics


  • Ph.D. in Economics, University of California, Los Angeles, 2016
  • Bachelor in Economics, the University of Hong Kong, 2010

Contact Information

Menghan Xu

B313-A, Economics Building, Xiamen University
422 Siming South Street, Xiamen
361005 China
Email: xumhandy@ucla.edu;  xumh@xmu.edu.cn

Working Paper

Search Friction in Crowdfunding Market

This paper studies how search frictions affect price competition and funding allocation in the crowdfunding market theoretically and empirically. I develop a dynamic many-to-one matching model with fixed sample search, a la Burdett and Judd (1983) and show that borrowers employ mixed strategies in setting interest rates in unique stationary equilibrium. Empirically, by documenting a novel data on a large panel of fundraisers’ behaviors, I find persistent rate dispersion and funding mismatches, which is consistent with theoretical predictions induced by search friction. More importantly, model implies that in a many-to-one matching market, price dispersion caused by search frictions facilitates investor coordination and hence improves matching efficiency compared with that in a random matching environment. According to a non-parametric estimation, I find that with dispersed rates, coordination effect can improve aggregate funding probability by 28% compared with random matching situation.
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