Heterogeneous Discount Factors in an Assignment Model with Search Frictions
AbstractWe look at a simple market with two-sided heterogeneity and pairwise meetings. On the supply side are two landlord types who differ in the quality of their apartments. On the demand side is a continuum of tentant types who differ in their valuations for apartment types and their patience. For infinitesimal search frictions and an atomless tanant type distribution, we full ycharacterize all possible steady stage equilibria in a typical region of the parameter space. Our main finding is that the heterogeneous discount factors can cause strong deviations from the Walrasian outcome even when we asymptotically remove all the search frictions. All conventional frictional models with non-Walrasian limits are qualitatively different from the model in this paper.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 9906.
Date of creation: Jun 1999
Date of revision:
Contact details of provider:
Web page: http://www.univie.ac.at/vwl
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paper Administrator).
If references are entirely missing, you can add them using this form.