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Existence of a non-stationary equilibrium in search-and-matching models: tu and ntu

Author

Listed:
  • Sandmann, Christopher

    (Department of Economics, London School of Economics)

  • Bonneton, Nicolas

    (Department of Economics, Vanderbilt University)

Abstract

This paper proves the existence of a non-stationary equilibrium in the canonical search-and-matching model with heterogeneous agents. Non-stationarity entails that the number and characteristics of unmatched agents evolve endogenously over time. An equilibrium exists under minimal regularity conditions and for both paradigms considered in the literature: transferable and non-transferable utility. To address potential discontinuities in match opportunities across types, our analysis introduces a generalized Schauder fixed-point theorem suitable for models with discontinuous value functions.

Suggested Citation

  • Sandmann, Christopher & Bonneton, Nicolas, 0. "Existence of a non-stationary equilibrium in search-and-matching models: tu and ntu," Theoretical Economics, Econometric Society.
    • Handle: RePEc:the:publsh:5723
    as

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    References listed on IDEAS

    as
    1. Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-1150, September.
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    More about this item

    Keywords

    Equilibrium existence; search-and-matching; non-stationary search; mean field games; fixed point theorem;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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