The matching of likes is a frequently observed phenomenon. However, for such assortative matching to arise in a search … model, often implausibly strong conditions are required. This paper shows that, once signals are introduced, a search model … of random search, which creates in effect an almost frictionless environment. Hence the unique separating equilibrium in …

betweenfirms,thereby lowering prices and increasing economic welfare. This paperpresents a search model that provides a different …, but reduce prices when consumers search intensityis high. These different comparative statics results may explain themixed …

I examine a search model a la' Burdett and Judd (1983). Consumers are embedded in a consumers network, they may costly … search for price quotations and the information gathered are non-excludable along direct links. This allows me to explore the … effect of endogenous consumers externalities on market functioning. I first show that when search costs are low consumers …

This paper builds a consumer search model where the cost of going back to stores already searched is explicitly taken … into account. We show that the optimal search rule under costly recall is very different from the optimal search rule under … perfect recall. Under costly recall, the optimal search behaviour is nonstationary and, moreover, the reservation price is not …

information about the return to transactions with particular agents. In a search framework, signaling supports not simply a …

private information. Agents engage in costly search and meet randomly. The terms of trade are determined through bilateral ….e., as discounting and the fixed cost of search become small, all equilibria of the market game converge to perfectly …

Steady state equilibria in heterogeneous agent matching models with search frictions have been shown to exist in Shimer … and Smith (2000) under the assumption of a quadratic search technology. We extend their analysis to the commonly … investigated linear search technology. …

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 non-trivial, full trade search equilibrium is shown to exist, equilibria …