We consider a market in which some consumers are fully informed about the quality of a product sold by different firms, while other consumers are uninformed. We examine the effects on the prices and qualities offered in the market of increasing the fraction of informed consumers. In equilibrium,...

We analyse a model of equilibrium directed search in a large labour market. Each worker, observing the wages posted at all vacancies, makes a fixed, finite number of applications, a. We allow for the possibility of ex post competition should more than one vacancy want to hire the same worker....