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A Search Model of Optimal Pricing and Production

Alpern, Steve; Snower, Dennis J. - C.E.P.R. Discussion Papers - 1988

and production decisions. We show how this methodology can be used to determine an optimal sequence of price …-quantity decisions by a firm through time. We suppose that the firm chooses a sequence of prices and quantities supplied over time not …. We compare and contrast the high-low model with the conventional microeconomic model of pricing and production. We show …

Persistent link: https://www.econbiz.de/10005656333

Unemployment versus Mismatch of Talents: Reconsidering Unemployment Benefits

Marimon, Ramon; Zilibotti, Fabrizio - C.E.P.R. Discussion Papers - 1997

We develop an equilibrium search-matching model with risk-neutral agents and two-sided ex-ante heterogeneity. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The predictions of our simple model are consistent with the...

Persistent link: https://www.econbiz.de/10005788908

Efficient Wage Dispersion

Acemoglu, Daron; Shimer, Robert - C.E.P.R. Discussion Papers - 1997

, equilibrium wage dispersion is necessary for the economy to approximate efficiency. Without wage dispersion, workers do not search …

Persistent link: https://www.econbiz.de/10005124074

Decentralized Trade, Entrepreneurial Investment and the Theory of Unemployment

Coles, Melvyn G - C.E.P.R. Discussion Papers - 1996

This paper considers an equilibrium model of unemployment in a labour market where all vacancies are advertised in a newspaper. Unemployment occurs in occupations that are short on vacancies. New vacancies are created by entrepreneurial search and investment, so it may take some time before an...

Persistent link: https://www.econbiz.de/10005504418