Albrecht, James W.; Axell, Bo - Institutet för Näringslivsforskning (IFN) - 1982
firms these optimal strategies generate product demand and labor supply schedules. Firms then choose prices and wages to … firms given individuals optimal search strategies. There are two possible equilibrium configurations, a degenerate … equilibrium in which all firms charge the same price and wage and a price and wage dispersion equilibrium. We show that there …