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 …

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 …

(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 …

private information. Agents engage in costly search and meet randomly. The terms of trade are determined through a Bayesian … mechanism proposal game. The paper considers a market in steady state. As discounting and the fixed cost of search become small …

We explore the role of private information in bilateral matching and bargaining. Our model is a replica of Mortensen … equilibria in which not every meeting results in trade. All equilibria converge to perfect competition as the frictions of search …

option to buy via search or return to bargaining. Here many buyers choose a bargaining agreement when a search outcome is …This experimental study investigates two bargaining games with twosided incomplete information between a seller and a … predicted. For those who opt out, search outcomes are overall efficient and behavior is relatively close to the optimal search …

option to buy via search or return to bargaining. Here many buyers choose a bargaining agreement when a search outcome is …This experimental study investigates two bargaining games with twosided incomplete information between a seller and a … predicted. For those who opt out, search outcomes are overall efficient and behavior is relatively close to the optimal search …

We prove existence of steady-state equilibrium in a class of matching models with search frictions. …