In a two-sided search market agents are paired to bargain over a unit surplus. The matching market serves as an endogenous outside option for agents in a bargaining relationship. Behavioral agents are (strategically inflexible) commitment types that demand a constant portion of the unit surplus....

In a two-sided search market agents are paired to bargain over a unit surplus. The matching market serves as an endogenous outside option for a bargaining agent. Behavioral agents are commitment types that demand a constant portion of the surplus. The frequency of behavioral types is determined...

This paper considers a frictional market where buyers and sellers, with unit demand and supply, search for trading opportunities. The analysis focuses on explicit search frictions, allows for two-sided incomplete information, and puts no restriction on agent heterogeneity. In this context, a...

This paper shows that all perfect Bayesian equilibria of a decentralized dynamic matching market with two-sided incomplete information of independent private values variety converge to competitive equilibria. Each buyer wants to purchase a bundle of heterogeneous, indivisible goods and each...