IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Bilateral Search and Vertical Heterogeneity

Listed author(s):
  • Jan Eeckhout

The Two-Sided Perfect Matching model is generalised to an Imperfect Matching model with search frictions. A search model is proposed which is characterised by bilateral search and vertical heterogeneity and allows for a generally specified utility function. The fundamental result is that with common beliefs about the evolving population, a unique Imperfect Matching equilibrium exists in iterated strict dominance. This holds independent of the characteristics of the utility function. The properties of equilibrium are analysed for different pay-off specifications. It is shown that for multiplicatively separable pay-offs both Steady State distributions are endogenously partitioned into classes. This fails to hold however out of Steady State. With search frictions disappearing, the limit case of the search model is the Gale-Shapley-Becker Perfect Matching model.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Theoretical Economics Paper Series with number /1996/315.

in new window

Date of creation: Oct 1996
Handle: RePEc:cep:stitep:/1996/315
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cep:stitep:/1996/315. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.