Damien, Gaumont; Martin, Schindler; Randall, Wright - In: The B.E. Journal of Macroeconomics 6 (2006) 2, pp. 1-18
Search models with wage posting and match-specific heterogeneity generate wage dispersion. Given K values for the match-specific variable, it is known that there are K reservation wages that could be posted, but generically never more than two actually are posted in equilibrium. What is unknown...