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We introduce a model of product development in a firm. Our model describes the process as a multi-stage contest (i.e., race) with an endogenous length (with one stage or two stages) between two workers. We model the payments to workers from the new product using the normatively appealing Nash...
Persistent link: https://www.econbiz.de/10012165947
model the principal-agent economy as a two-sided matching game and characterise the set of stable outcomes of this principal …-agent matching market. A simple mechanism to implement the set of stable outcomes is proposed. Finally, we put forward examples of …
Persistent link: https://www.econbiz.de/10011507906
We investigate how job displacement affects whom men marry and study implications for marriage market matching theory … substitutes rather than complements in the marriage market; (ii) our findings are hard to reconcile with one-dimensional matching … if matched with low-earning women and to re-match with higher earning women. We use a general search and matching model …
Persistent link: https://www.econbiz.de/10015075023
Evidence suggests that participants in direct student-proposing deferred-acceptance mechanisms (DA) play dominated strategies. To explain the data, we introduce expectation-based loss aversion into a school-choice setting and characterize choice-acclimating personal equilibria in DA. We find...
Persistent link: https://www.econbiz.de/10012698801
We investigate the effect of search frictions on labor market sorting by constructing a model which is in line with recent evidence that employers collect a pool of applicants before interviewing a subset of them. In this environment, we derive the necessary and sufficient conditions for sorting...
Persistent link: https://www.econbiz.de/10012581332
Matching mechanisms are regarded as an important instrument to bring about Pareto optimal allocations in a public good … interior matching equilibrium, however, emerges only under very special conditions. But we show in this note that corner … results by a simple numerical example. -- public goods ; matching ; Pareto optimality …
Persistent link: https://www.econbiz.de/10009011305
Stable matchings may fail to exist in the roommate matching problem, both when utility is transferable and when it is … not. We show that when utility is transferable, the existence of a stable matching is restored when there is an even … individuals of any given type is large enough there always exist "quasi-stable" matchings: a stable matching can be restored with …
Persistent link: https://www.econbiz.de/10010256106
This paper develops a new equilibrium model of two-sided search where agents have multiple attributes and general payoff functions. The model can be applied to several substantive issues. Here we use it to provide a novel understanding of the separate effects of equal opportunities for women in...
Persistent link: https://www.econbiz.de/10010227223
frictions and the fact that physical appearance plays an important role in attracting a marriage partner. We analyse the … interaction between frictional labour and marriage markets and establish the existence of a search equilibrium characterised by … male wage differentials. The equilibrium may also display the "marriage premium". predicted to be lower among attractive …
Persistent link: https://www.econbiz.de/10010491716
We present an equilibrium model of inter-linked frictional labour and marriage markets. In the marital market, men and … (initiated by women) is an option, in an equilibrium with male marriage premium married men have a higher reservation wage than …
Persistent link: https://www.econbiz.de/10014541634