Restrepo-Echavarria, Paulina; Cheremukhin, Anton A.; … - Federal Reserve Bank of St. Louis - 2013
We present a theory of targeted search, where people with a finite information processing capacity search for a match …. Our theory explicitly accounts for both the quantity and the quality of matches. It delivers a unique equilibrium that … is inefficient relative to the constrained Pareto allocation. Our theory encompasses the outcomes of the random matching …