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We show how frictions and continuous transfers jointly affect equilibria in a model of matching in trading networks. Our model incorporates distortionary frictions such as transaction taxes, bargaining costs, and incomplete markets. When contracts are fully substitutable for firms, competitive...
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network; and [2] the incentives of a seller s to cooperate can be calculated as if the network was a random tree with seller s …
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particular, if the linking costs are not too low and not too high, at least one such network is pairwise stable. Moreover, in … explanation for many core-periphery structures observed in real life social networks. -- Network Formation ; Heterogeneity …
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normal level of 26 weeks to an unprecedented 99 weeks. I estimate the impact of these extensions on job search, comparing …
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