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. Interestingly, we find that the required degree of production complementarity for positive sorting is increasing in the number of …We investigate the e↵ect of search frictions on labor market sorting by constructing a model which is in line with … derive the necessary and sucient conditions for sorting in applications as well as matches. We show that positive sorting is …
Persistent link: https://www.econbiz.de/10012591555
Labor market theories allowing for search frictions make marked predictions on the effect of the degree of frictions on wages. Often, the effect is predicted to be negative. Despite the popularity of these theories, this has never been tested. We perform tests with matched worker-firm data. The...
Persistent link: https://www.econbiz.de/10011349215
Persistent link: https://www.econbiz.de/10009719960
I study a one-way flow connections model in which players are heterogeneous with respect to values and the costs of establishing a link. I first show that values and costs asymmetries are crucial in determining the level of connectedness of a network. Interestingly, unconnected equilibria are...
Persistent link: https://www.econbiz.de/10011334833
This paper studies network formation in settings where players are heterogeneous with respect to benefits as well as the costs of forming links. Our results demonstrate that centrality, center-sponsorship and short network diameter are robust features of equilibrium networks. We find that in a...
Persistent link: https://www.econbiz.de/10011326943
A firm may induce voters or elected politicians to support a policy it favors by suggesting that it is more likely to invest in a district whose voters or representatives support the policy. In equilibrium, no one vote may be decisive, and the policy may gain strong support though the majority...
Persistent link: https://www.econbiz.de/10011378822
We develop a formal model of the internal game between the leader and the factions of a party, to study the effect of party leadership on electoral success. Factions are of interest or of principle. The probability of winning an election is increasing in the leader's charisma, but also in party...
Persistent link: https://www.econbiz.de/10012510666
This paper studies the diffusion of multiple, related technologies among firms. The results suggest an endogenous acceleration mechanism of technology adoption: The more advanced a firm is in using a particular set of technologies, the more likely it is to adopt additional, related technologies....
Persistent link: https://www.econbiz.de/10011377052
sanction, but necessitates an increase in expected wage compensation, which can result in sorting from both the top and bottom … of the altruism distribution. We also show how client composition affects sorting and why street-level bureaucrats often …
Persistent link: https://www.econbiz.de/10011377373
We consider the microfoundations controversy from the perspective of economic evolution. Although the analogy between biology and economics has been noted before, it has rarely focused on clarifying the micro-macro distinction in economic theory and modelling. The micro-macro debate is more...
Persistent link: https://www.econbiz.de/10011303863