Search Theory; Current Perspectives

Shouyong Shi

Working Papers from University of Toronto, Department of Economics

Abstract: In this article I briefly review recent developments in search theory. Particular attention is given to the framework of directed search. I first illustrate the inefficiency that arises in the equilibrium of standard (undirected) search models. Then I provide a formulation of directed search and show that the resulting equilibrium eliminates the inefficiency. Examples of directed search with price posting and auction are provided both for the market with a finite number of individuals and for a large market. After describing the application of search models in monetary theory, I conclude with a remark on the future research.

Keywords: Search; Efficiency; Unemployment (search for similar items in EconPapers)
JEL-codes: C78 E10 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2006-12-12
New Economics Papers: this item is included in nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:tor:tecipa:tecipa-273

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