outside option, which is modeled as a sequential search process during which he can also choose to return to bargaining at any …This paper studies a two-sided incomplete information bargaining model between a seller and a buyer. The buyer has an … time. Two cases considered: In Regime I, both agents have symmetric information about the search parameters. We find that …

(theoretically) that adding search to a simple bargaining mechanism eliminates some unsatisfactory features of bargaining theory. Our …, the buyer can choose to leave the negotiation table to search for other alternatives. Under one version, if the buyer … chooses to search for a better price, the opportunity to purchase the good at the stated price is gone. Under the second …

private information. Agents engage in costly search and meet randomly. The terms of trade are determined through bilateral … bargaining between buyers and sellers. The paper considers a market in steady state. It is shown that as frictions disappear, i ….e., as discounting and the fixed cost of search become small, all equilibria of the market game converge to perfectly …

have to search for a suitable counterparty, and once they have met, both parties negotiate the size of the loan and the …

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 …

first result shows that the economy always generates the right number of jobs. However, with random search firms under …-invest in capital due to a hold-up problem. In contrast, if workers can direct their search to firms with different capital … levels, the equilibrium is efficient. This result contrasts sharply with the predictions of models with ex post bargaining …