Nonstandard Foundations of Equilibrium Search Models

Michael Rauh ()

No 2005-02, Working Papers from Indiana University, Kelley School of Business, Department of Business Economics and Public Policy

Abstract: We develop an equilibrium sequential search model which includes most of the literature as special cases. In particular, the model can accommodate heterogeneity in buyers’ search costs and demand functions and firms’ cost functions, with general demand and cost functions. We identify conditions which ensure existence of equilibrium in pure strategies, utilizing recent progress in the theory of large games by Khan and Sun. These conditions elucidate the essential structure of equilibrium search models. Although we focus on sequential search, our methodology can be used for other classes of equilibrium search models as well.

Keywords: Search; equilibrium search models; nonstandard analysis (search for similar items in EconPapers)
JEL-codes: D43 D83 L0 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (3)

Published in Journal of Economic Theory, 2007

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Related works:
Journal Article: Nonstandard foundations of equilibrium search models (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:iuk:wpaper:2005-02

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