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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 can generate even perfect assortative matching under...
Persistent link: https://www.econbiz.de/10009553146
In a model of sequential search with transferable utility, we allow heterogeneous agents to strategically choose a costless signal of their type. Search frictions are included as discounting and explicit search costs. Through signals, if only they are truthful, agents can avoid the...
Persistent link: https://www.econbiz.de/10009671478
When agents do not know where to find a match, they search. However, agents could direct their search to agents who strategically choose a certain signal. Introducing cheap talk to a model of sequential search with bargaining, we find that signals will be truthful if there are mild...
Persistent link: https://www.econbiz.de/10010128388
Verbindungen zwischen ähnlichen Subjekten sind ein häufig beobachtetes Phänomen. Damit solche Sortierungen in einem Suchmodell auftreten, müssen oft jedoch überraschend starke Bedingungen erfüllt sein. Diese Studie zeigt, dass ein um Signale erweitertes Suchmodell sogar vollkommene...
Persistent link: https://www.econbiz.de/10010323818