We develop an empirical search-matching model which is suitable for analyzing the wage, employment and welfare impact … wage determination and employment which extends the current literature on equilibrium wage determination with matching and … of assortative matching between workers and jobs due to complementarities between worker and job characteristics. We use …

. Equilibrium investments and the equilibrium matching will be efficient if agents can simultaneously negotiate investments and … matches, but we focus on markets in which agents must first sink their investments before matching. Additional equilibria may … arise in this sunk-investment setting, even though our matching market is competitive. These equilibria exhibit …

make investments before matching in a competitive market. We introduce the notion of premuneration values -- the values to …

are no transaction costs, the outcome of this matching and bargaining game should be the unique competitive equilibrium … equilibrium that survives is the unique competitive outcome. This will be done both for the random matching and for the voluntary … matching models. Thus the paper demonstrates that complexity costs might have a role in providing a justification for the …

A large literature uses matching models to analyze markets with two-sided heterogeneity, studying problems such as the … matching of students to schools, residents to hospitals, husbands to wives, and workers to firms. The analysis typically … matching problems with one-sided asymmetric information. The key conceptual problem is to formulate a notion of a blocking pair …