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 …

). This class of games includes a simple random-proposer TIOLI game, but also many other interesting bargaining games. A … converge to the Walrasian limit, at the fastest possible rate O(t) among all bargaining mechanisms. Some important bargaining …

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. …

two-sided search and matching model used to rationalize the empirical facts and carry out predictions regarding match …

strategically choose a certain signal. Introducing cheap talk to a model of sequential search with bargaining, we find that signals …When agents do not know where to find a match, they search. However, agents could direct their search to agents who …-crossing property and sorting condition coincide. As the information from signals allows agents to avoid all unnecessary search, this …

This article develops a search-theoretic model of financial intermediation to study the efficiency condition of the … banking sector. Competitive financial intermediation is determined by the search decisions of both households (to find … by banks or are bargained under a specific Hosios (1990) condition, which addresses the hold-up problem induced by search …

We present a theory of targeted search, where people with a finite information processing capacity search for a match … resides in between the random matching and the directed search outcomes. The equilibrium that emerges from this middle ground … and the directed search literature as limiting cases. …

We endogenize the trade mechanism in a search economy with many homogenous sellers and many heterogeneous buyers of …