We investigate a canonical search-theoretic model without entry. Two agents are randomly matched with a long side being …

This chapter surveys the literature on the microstructure of housing markets. It considers one-sided search, random … matching, and directed search models. It also examines the bargaining that takes place once a match has occurred, with the … bargaining taking various forms, including two-party negotiations of different types and multiparty housing auctions. The chapter …

Housing markets clear, in part, through the time that buyers and sellers spend on the market. We show that demand … the elasticity of the matching function. …

We endogenize the trade mechanism in a search economy with many homogenous sellers and many heterogeneous buyers of …

This article reviews the developments in frictional matching models from 1990 to 2010, exploring how search frictions … different attacks on the existence of equilibrium required for these search and matching models. …

-sharing due to search frictions implies that ‘good’ jobs which have higher creation costs must pay higher wages. This wage …

A dynamic equilibrium model of an economy with underground trade is developed in which agents devote effort to search …

or more of the posted wages, i.e. search, before deciding where to apply. Both with homogeneous and heterogeneous forms …, equilibrium wage dispersion is necessary for the economy to approximate efficiency. Without wage dispersion, workers do not search …, and wages are depressed. As a result: (a) there is excessive entry of firms; and (b) because, in the absence of search …