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Questions tagged [search-and-matching]

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2
votes
1answer
50 views

Burdett and Mortensen (1998), Equation (22), Integral by parts question

Suppose $F(x)$ and $H(x)$ are both cumulative prob dist functions on the support of $[b_0,b_1]$ and we know followings: $$u(x|F)=\int_{b_0}^{x}\frac{m}{1+k[1-F(b)]} dH(b)$$ and from this $$[1+k(1-...
4
votes
2answers
66 views

A confusion regarding search and matching model in Pissarides's “Equilibrium Unemployment Theory” book

I was studying chapter 1 of the book "Equilibrium Unemployment Theory" and I got confused about the way Pissarides has defined the probability of a firm not finding a worker in a short time interval $...
3
votes
1answer
34 views

Modeling job application process in labor market

I need to model the job application process by job seekers. Specifically a job seeker when looking for a job, comes across a job and then decides whether to apply for it or not. I want to model this ...
8
votes
2answers
122 views

Differentiation of the value function in Burdett Mortensen (1998)

I'm currently making my way through Burdett and Mortensen's classic paper of on the job search. What should be an easy task of finding an expression for the reservation wage is made slightly more ...
0
votes
1answer
28 views

What are the general charateristics of matching markets that make then different from regular markets?

I would like to know what exactly makes matching markets different from regular markets. If you could illustrate with examples to help me understand better, that would be nice. Thanks in advance.
3
votes
0answers
44 views

Welfare function in General Capital model (Search and Matching)?

i'm working on a model from the Mortensen textbook: "Wage dispersion why are similar workers paid differently?". To be precise, i'm working on the model about general capital. In this case, capital is ...
1
vote
1answer
29 views

Directed search with privately informed buyers and capacities

My question seems to be a basic one and there should be a rather well-known reference in the (IO or labor) search literature. I will upvote (and comment on) any relevant answer and I will accept an ...
0
votes
1answer
101 views

McCall Search Model: Present value of lifetime income

In the Bellman for the search model, how is the present discounted value of future income equal to $\frac{w}{1-\beta}$? Sounds like a basic question but I just can't comprehend the math in my head, ...
1
vote
0answers
21 views

Why must the wage barganing be derived at steady-state?

In wage bargaining theory, in the context of matching theory, firms and workers can negotiate a Nash equilibrium by maximizing a function of firms' and workers' surplus - with the purpose of allowing ...
0
votes
2answers
73 views

Why is matching function increasing in arguments?

In matching theory, the matching function $m_t=m(u_t,v_t)$, where $m_t$ is the number of matches(new hires) between unemployed looking for work($u_t$) and vacancies($v_t$). This matching function is ...
3
votes
1answer
62 views

Price when both supply and demand have market power

I have an intermediate sector that operates using labor only. There is 1-1 pairs between firms and workers, with profits $$\pi = (Ap - w)\cdot 1$$ $p$ is the price, $A$ productivity, $w$ wage. ...
1
vote
1answer
71 views

Equilibrium value of $b$ (market tightness) in a search model

Consider the following one-shot version of a labour market matching model. Let the labour force be normalized at 1, who, because there is only one period, all start out as unemployed. There is a very ...
3
votes
1answer
104 views

Showing that the elasticity of arrival rate for workers wrt $\theta$ is between $0$ and $1$

Let $L=E+U$ where $L$ is labour force, $E$ is number of employed, and $U$ is unemployed people. Let $u = \frac{U}{L}$ and $v = \frac{V}{L}$. Given $m(u,v)$ as a matching function that determines ...
3
votes
1answer
63 views

Matching in Blanchard-Diamond (1994)

Setup Blanchard-Diamond (1994) have a model where each unemployed has a single ball (application) that she tosses into urns (vacancies). With probability $a$ the application lands in the urn - the ...
4
votes
0answers
93 views

Job-finding rate in an urn-ball model with types

Setup Say you have two types of workers, high and low. The share of low-types among the unemployed population is $P$. I want to find the job-finding rate for these types. Matching Matching is ...
0
votes
1answer
24 views

Search model with firm decision

I am wondering if there is any work in search models that discusses firm behaviors. Most common search models that I am familiar with talk about the job seeker's threshold rule. Is there any model ...
6
votes
2answers
56 views

Proof that the diff-in-diff (wrt sample size) of the expectation of a first-order statistic is positive (Stigler 1961)

I'm trying to prove a claim made in Stigler (1961), "The Economics of Information." This claim has to do with showing that the marginal benefit of making an additional search (e.g., searching an ...
5
votes
1answer
335 views

How do you determine the strict core in a matching game?

So I have a game in which home owners prefer certain other's homes. The owners are A, B, C, and D with a, b, c, and d referring to their respective homes. They each prefer homes according to the ...
3
votes
1answer
98 views

Amplification Effects: Negative Denominator

Let $0 < \rho < 1$ be the discount rate, $V$ some option value, and $F$ some fundamental. $$ \rho V = \beta V + F$$ You have access to some option value $V$ that will always deliver you some ...
3
votes
1answer
63 views

Is there an algorithm to find as many NE as possible in this generalized second price auction?

Suppose three advertisers, I, II, III are participating in an auction for three positions for online advertising, top, middle and bottom. Assume that click per second for a position is not affected ...
9
votes
1answer
181 views

Matching Theory: Search Time

Consider the standard Diamonds coconut economy. One could imagine that people who search longer, have a different likelihood of matching someone to trade with. Has there been something done akin this ...