This paper develops the theory of statistical discrimination in the form of unequal employment criteria and interviews. Workers differ by imperfectly observed 'quit rate.' Profit maximization leads firms to set stricter employment criteria or interview fewer workers from the group with a greater...

In this article, a market for access to trading partners arises through the operation of a competitive market in which consumers queue for goods at firms. Equilibrium occurs when firms and buyers face the same trade-off between price and wait time. The trade-off measures the cost to firms of...

In a model in which different types of workers form matches with different types of employers, a method of calculating opportunity costs of workers and jobs is derived. These are shown to differ systematically from the reservation wages and profits used by workers and employers to determine...