This paper considers a frictional market where buyers and sellers, with unit demand and supply, search for trading … opportunities. The analysis focuses on explicit search frictions, allows for two-sided incomplete information, and puts no … restriction on agent heterogeneity. In this context, a non-trivial, full trade search equilibrium is shown to exist, equilibria …

private information. Agents engage in costly search and meet randomly. The terms of trade are determined through a Bayesian … mechanism proposal game. The paper considers a market in steady state. As discounting and the fixed cost of search become small …

search costs, plus more general matching and bargaining. This allows us to study many new issues, including entry, efficiency … parameters but not others. Sometimes intermediation is essential: the market operates iff middlemen are active. If bargaining …

We analyze agents' decisions to act as producers or intermediaries using equilibrium search theory. Extending previous …

uncertain. We identify two conflicting effects. On the one hand, reducing the consumer's cost of search for quality exacerbates …, makes investment less attractive. This discourages investment, leading to lower quality. We show that reducing the search … cost leads to higher quality if the initial level of the search cost is sufficiently high but may lead to lower quality if …

bargaining between firms and workers, job search intensity is endogenous and workers are heterogeneous. The analysis suggests … decrease as the level of earnings rises. The framework is a search equilibrium model where wages are determined by Nash …