Michelacci, Claudio; Suarez, Javier - C.E.P.R. Discussion Papers - 2002
We consider a competitive search model where firms with vacancies choose between posting a wage ex-ante and bargaining …-up problem associated with bargaining but are incomplete since they cannot be contingent on worker qualifications. In contrast … the hold-up problem is mild and workers' heterogeneity is large, firms opt for bargaining. Yet equilibria with bargaining …