Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9724490 | International Journal of Industrial Organization | 2005 | 15 Pages |
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
Pedro Pereira,