Should the editor share the names / institution information of authors with the reviewers
This is called double-blind review. It is common in some fields, though I seem to see it more in conferences than journals.

There are a bunch of issues with double-blind review, next to the obvious overhead:


It prevents uploading preprints, since authors risk revealing their identity. This can be a problem in fields with long review times like maths since results would be kept silent longer.
If a paper is accompanied by software, how can it be licensed? 
It doesn't always work, particularly when working in niches with few active researchers. Sometimes you can guess the author with reasonable accuracy based on the content and style of a paper. Some people even manage to guess the reviewer based on feedback.


Some take it even one step further to go for triple-blind review, in which:


The authors do not know the reviewers' identities.
The reviewers do not know the authors' identities.
The person that selects reviewers does not know the identities of the authors.


I would like to take this opportunity to suggest quadruple-blind review, which is triple-blind review in which the reviewers do not get to see the manuscript. To ensure anonymity, of course. You heard it here first!