both the vacancy-unemployment ratio and employment. We show that the standard version of the Mortensen-Pissarides matching … the matching model with sunk costs, new job openings react sluggishly to shocks, leading to highly realistic dynamics …

This paper analyzes monetary exchange in a search model allowing for multilateral matches to be formed, according to a …), and Lagos and Wright (2005) respectively. We Â…nd that the multilateral matching setting generates very simple and … ‡exible prices and directed search, the Â…rst best allocation can be attained through price posting or through auctions …

We investigate an extensive form sequential matching game of perfect information. We show that the subgame perfect … equilibrium of the sequential matching game leads to the unique stable matching when the Eeckhout Condition (2000) for existence … of a unique stable matching holds, regardless of the sequence of agents. This result does not extend to preferences that …

. This effect may make the market less efficient than random matching. We show that the first best can be achieved using …

A model of directed search with a finite number of buyers and sellers is considered, where sellers compete in direct … implements positive assortative matching, which is efficient and consistent with the stable (cooperative equilibrium) outcome …