The phenomenon of unraveling occurs in many markets. Answer the following questions by using the guidance given under each question:
a. Explain the concept of “unraveling”. Explain the impact of unraveling on the efficiency of a market.
b. What are possible causes for a markets to unravel?
c. Give an example (not covered in the lecture) of an existing (real world) market that exhibits unraveling. Describe the design of the market and relate its design to the phenomenon of unravelling using the schematic description in Roth and Xing 1994 (Slide 27 of the lectures for Week 5).
d. What could be potential market design interventions to stop unraveling in the market you have described in
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