Heterogeneity as a coordination device
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- dc.contributor.author Coles, Melvyn G.
- dc.contributor.author Eeckhout, Jan
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2020-05-25T09:27:06Z
- dc.date.available 2020-05-25T09:27:06Z
- dc.date.issued 2000-02-01
- dc.date.modified 2020-05-25T09:18:49Z
- dc.description.abstract A model of directed search with a finite number of buyers and sellers is considered, where sellers compete in direct mechanisms. Buyer heterogeneity and Nash equilibrium results in perfect sorting. The restriction to complementary inputs, that the match value function Q is supermodular, in addition coordinates the sellers strategies. In that case, equilibrium implements positive assortative matching, which is efficient and consistent with the stable (cooperative equilibrium) outcome. This provides a non-cooperative and decentralized solution for the Assignment Game. Conversely, if buyers are identical, no such coordination is possible, and there is a continuum of equilibria, one of which exhibits price posting, another yields competition in auctions.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=510
- dc.identifier.citation Journal of Economic Theory, 111, pp. 265-276, 2003
- dc.identifier.uri http://hdl.handle.net/10230/1188
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 510
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword matching
- dc.subject.keyword assignment game
- dc.subject.keyword directed search
- dc.subject.keyword supermodularity
- dc.subject.keyword truthful equilibrium
- dc.subject.keyword Microeconomics
- dc.title Heterogeneity as a coordination device
- dc.title.alternative Indeterminacy and Directed Search
- dc.type info:eu-repo/semantics/workingPaper