| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5058354 | Economics Letters | 2015 | 4 Pages |
Abstract
â¢I study the effects of a minimum price on the market price distribution.â¢The distribution will have a mass point at the minimum price and a gap around it.â¢If the minimum price is sufficiently high, all sellers will post it.
In this paper I consider the effects of a minimum price (maximum wage) in a random search model with price (wage) posting. I show that with a minimum price, the price distribution will have a mass point. If the minimum price is sufficiently high, the price distribution will become degenerate.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Xiaoming Cai,