Article ID Journal Published Year Pages File Type
957535 Journal of Economic Theory 2007 12 Pages PDF
Abstract
We develop an equilibrium sequential search model which includes most of the literature as special cases. In particular, the model can accommodate heterogeneity in buyers' search costs and demand functions and firms' cost functions, with general demand and cost functions. We identify conditions which ensure existence of equilibrium in pure strategies, utilizing recent progress in the theory of large games by Khan and Sun. These conditions elucidate the essential structure of equilibrium search models. Although we focus on sequential search, our methodology can be used for other classes of equilibrium search models as well.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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