EconPapers    
Economics at your fingertips  
 

Simultaneous Search with Heterogeneous Firms and Ex Post Competition

Pieter Gautier () and Ronald Wolthoff ()

No 2056, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study a search model where workers can send multiple applications to high and low productivity firms. Firms that compete for the same candidate can increase their wage offers as often as they like. We show that there is a unique equilibrium where workers mix between sending both applications to the high and both to the low productivity sector. Efficiency requires however that they apply to both sectors because then the coordination frictions are lowest. For many configurations, the equilibrium outcomes are the same under directed and random search. Allowing for free entry creates a second source of inefficiency.

Keywords: efficiency; coordination frictions; directed search (search for similar items in EconPapers)
JEL-codes: D83 E24 J23 J24 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
Date: 2006-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Published in: Labour Economics, 2009, 16 (3), 311-319

Downloads: (external link)
http://ftp.iza.org/dp2056.pdf (application/pdf)

Related works:
Journal Article: Simultaneous search with heterogeneous firms and ex post competition (2009) Downloads
Working Paper: Simultaneous Search with Heterogeneous Firms and Ex Post Competition (2007) Downloads
Working Paper: Simultaneous Search with Heterogeneous Firms and Ex Post Competition (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp2056

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2019-10-13
Handle: RePEc:iza:izadps:dp2056