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Equilibrium Directed Search with Multiple Applications

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  • James Albrecht
  • Pieter Gautier

Abstract

We analyze a model of directed search in which unemployed job seekers observe all posted wages. We allow for the possibility of multiple applications by workers and ex post competition among vacancies. For any number of applications, there is a unique symmetric equilibrium in which vacancies post a common wage. When workers apply to only one vacancy, a single wage is paid and the resulting equilibrium is efficient. When workers make multiple applications, there is dispersion in wages paid, and equilibrium may be inefficient. We show that our results also hold in a steady-state version of the model.
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Suggested Citation

  • James Albrecht & Pieter Gautier, 2004. "Equilibrium Directed Search with Multiple Applications," Econometric Society 2004 Latin American Meetings 330, Econometric Society.
    • Handle: RePEc:ecm:latm04:330
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    References listed on IDEAS

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    More about this item

    Keywords

    Equilibrium Directed Search;

    JEL classification:

    • Z0 - Other Special Topics - - General

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