Performance and Turnover in a Stochastic Partnership

This paper characterizes the social-welfare maximizing equilibrium of a \stochastic partnership matching market", in which players paired to play a stochastic game may quit to be costlessly and anonymously re-matched. Patterns of performance and turnover in this equilibrium are consistent with the well-known \survivorship bias" and, if partners form \meaningful rst impressions", with the \honeymoon eect".