Article ID Journal Published Year Pages File Type
9724490 International Journal of Industrial Organization 2005 15 Pages PDF
Abstract
In this paper, I show that there may be multiple equilibria in search markets with production cost heterogeneity, if firms may enter or exit the industry. I provide a monotonicity property, which is necessary and sufficient for uniqueness. Multiplicity vanishes as the search cost gets small. Multiple equilibria can be ranked by welfare.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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