Journal of Economic Literature Vol. 55 No. 2 2017

Sorting through Search and Matching Models in Economics

Hector Chade¹; Jan Eeckhout²; Lones Smith³

¹ Department of Economics, Arizona State University · ² Department of Economics UPF–ICREA–Barcelona GSE and University College London. · ³ Department of Economics, University of Wisconsin-Madison

Abstract

Toward understanding assortative matching, this is a self-contained introduction to research on search and matching. We first explore the nontransferable and perfectly transferable utility matching paradigms, and then a unifying imperfectly transferable utility matching model. Motivated by some unrealistic predictions of frictionless matching, we flesh out the foundational economics of search theory. We then revisit the original matching paradigms with search frictions. We finally allow informational frictions that often arise, such as in college-student sorting.

DOI

10.1257/jel.20150777

Volume

55

Issue

2

Pages

493-544

Language

en

Sources

crossref openalex

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓