Search theory, competitive equilibrium, and the Nash bargaining solution
- Title
- Search theory, competitive equilibrium, and the Nash bargaining solution
- Author
- 조인구
- Keywords
- Matching; Search; Undominated strategy equilibrium; Nash bargaining solution
- Issue Date
- 2013-08
- Publisher
- Elsevier Science B.V., Amsterdam
- Citation
- Journal of economic theory , Aug 2013, 148(4), P.1659-1688
- Abstract
- We investigate a canonical search-theoretic model without entry. Two agents are randomly matched with a long side being rationed. The matched agents face a pair of randomly drawn non-transferable payoffs, and then choose whether or not to form a partnership subject to a small probability of exogenous break down. As this probability and friction vanish, the Nash bargaining solution emerges as the unique undominated strategy equilibrium outcome if the mass of each party is the same. If the size of one party is larger than the other, the short side extracts the entire surplus, a sharp contrast to Rubinstein and Wolinsky (1985) [16]. (C) 2013 Elsevier Inc. All rights reserved.
- URI
- https://www.sciencedirect.com/science/article/pii/S0022053113000690?via%3Dihubhttp://hdl.handle.net/20.500.11754/45191
- ISSN
- 0022-0531
- DOI
- 10.1016/j.jet.2013.04.003
- Appears in Collections:
- COLLEGE OF ECONOMICS AND FINANCE[S](경제금융대학) > ECONOMICS & FINANCE(경제금융학부) > Articles
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