Cho, In-Koo; Matsui, Akihiko - In: Journal of Economic Theory 148 (2013) 4, pp. 1659-1688
We investigate a canonical search-theoretic model without entry. Two agents are randomly matched with a long side being rationed. The matched agents face a pair of randomly drawn non-transferable payoffs, and then choose whether or not to form a partnership subject to a small probability of...