This paper studies optimal search strategy and equilibrium contract design when one attribute of an offer is difficult to evaluate ex ante, but an individual eventually learns its true value and can conduct `on-the-job' search. Focusing on a type of agents who cannot infer the value of the...

This paper investigates the age-dependency of participation andunemployment by integrating job search with intertemporal optimizing behaviorof finitely-lived households. We find that search frictions and tax ratesdistort the decisions of older workers to a much larger extent than that ofyoung...

This paper investigates the age-dependency of participation and unemployment by integrating job search with intertemporal optimizing behavior of finitely-lived households. We find that search frictions and tax rates distort the decisions of older workers to a much larger extent than that of...

We introduce and solve a new class of quot;downward-recursivequot; static portfolio choice problems. An individual simultaneously chooses among ranked stochastic options, and each choice is costly. In the motivational application, just one may be exercised from those that succeed. This often...

This paper applies queueing theory to derive the equilibrium of a labor market with frictions. Queueing arises when workers can get jobs by waiting at a firm for a position to open. Queueing theory provides expressions for the expected numbers of vacancies, searching workers and queueing...

This paper studies a dynamic quantile model for intertemporal decisions under uncertainty, in which the decision maker maximizes the τ-quantile of the stream of future utilities, for τ ∈ (0,1). We present two sets of contributions. First, we generalize existing results in directions that are...

In traditional sequential search models, players face ex ante uncertainty prior to each search but obtain certain outcomes after the search. The players' reservation value tends to decrease with their level of risk aversion. We propose a modified sequential search model with ex post uncertainty...

I introduce a simple model of memory load in multiple attribute search and prove which types of search behavior require the least amount of memory load. The model is easily implementable and tracks choice error rates in the lab. The results on minimum memory load search can be used to explain a...