Sorting through Search and Matching Models in Economics

Hector Chade; Jan Eeckhout; Lones Smith

doi:10.1257/jel.20150777

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

Journal of Economic Literature 2017 open access

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. (JEL C78, D82, D83, I23, J12)

DOI: 10.1257/jel.20150777
Volume: 55 (2)
Pages: 493-544
Language: en
Export: BibTeX
Sources: openalex crossref