We study global and local dynamics of a simple search and matching model of the labor market. We show that the model can be locally indeterminate or have no equilibrium at all, but only for parameterizations that are empirically implausible. In contrast to the local results, we show that the...

This paper applies queueing theory to derive the equilibrium of a labor market with frictions. Queueing arises when workers can get jobs by waiting at a firm for a position to open. Queueing theory provides expressions for the expected numbers of vacancies, searching workers and queueing...

We introduce and solve a new class of quot;downward-recursivequot; static portfolio choice problems. An individual simultaneously chooses among ranked stochastic options, and each choice is costly. In the motivational application, just one may be exercised from those that succeed. This often...

This paper's objective is to design a laboratory experiment to explore the effect of ambiguity on a subject's search behavior in a finite-horizon sequential search model. In so doing, we employ a new approach to observe the potential trend of reservation points that is usually unobserved. We...

The current paper defines the optimal sequential information gathering structure of rational utility maximizer decision makers and illustrates numerically how their incentives to gather information among different goods decrease in their degree of risk aversion

I introduce a simple model of memory load in multiple attribute search and prove which types of search behavior require the least amount of memory load. The model is easily implementable and tracks choice error rates in the lab. The results on minimum memory load search can be used to explain a...

Multiple attribute search is a central feature of economic life: we consider much more than price when purchasing a home, and more than wage when choosing a job. Nevertheless, while single attribute search problems have been studied extensively, little is known about optimal search in multiple...

This paper studies a two-sided search model with the following characteristics: there is a continuum of agents with different types in each population, match utility is nontransferable, and there is a fixed search cost that agents incur in each period. When utility functions are additively...

We model fairness within the context of search. To do this, consider sequential search where the searcher is uncertain about the underlying pool of candidates. Fairness is introduced by requiring that candidates cannot be discriminated against by non-merit characteristics or by the order in...