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...

This paper extends the discussion of the relationship between Bayesian stability and Bayesian efficiency in Liu(2020). We focus on the worst possible case for workers, in which firms offer workers wages exactly opposite to workers’ initial payoffs, so that workers will always enjoy a zero...