An alternative approach to search frictions

Ricardo Lagos

    Research output: Contribution to journalArticle

    Abstract

    This paper illustrates an alternative approach to modeling search frictions. Frictions are not assumed to exist, but are shown to arise endogenously as a distinctive feature of the set of equilibria that correspond to a particular range of parameter values. The model's spatial structure and the agents' moving decisions are explicitly spelled out, allowing the number of contacts that occur to depend on the way agents choose to locate themselves. An aggregate matching function is shown to exist, and its behavior with respect to changes in parameters such as distances between locations, the agents' payoffs, and the sizes of the populations of searchers on each side of the market is completely characterized.

    Original languageEnglish (US)
    Pages (from-to)851-873
    Number of pages23
    JournalJournal of Political Economy
    Volume108
    Issue number5
    DOIs
    StatePublished - 2000

    Fingerprint

    Search frictions
    Modeling
    Matching function
    Spatial structure
    Friction

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    An alternative approach to search frictions. / Lagos, Ricardo.

    In: Journal of Political Economy, Vol. 108, No. 5, 2000, p. 851-873.

    Research output: Contribution to journalArticle

    Lagos, Ricardo. / An alternative approach to search frictions. In: Journal of Political Economy. 2000 ; Vol. 108, No. 5. pp. 851-873.
    @article{3e5293d3eb074e86986fa359ed3a0f7d,
    title = "An alternative approach to search frictions",
    abstract = "This paper illustrates an alternative approach to modeling search frictions. Frictions are not assumed to exist, but are shown to arise endogenously as a distinctive feature of the set of equilibria that correspond to a particular range of parameter values. The model's spatial structure and the agents' moving decisions are explicitly spelled out, allowing the number of contacts that occur to depend on the way agents choose to locate themselves. An aggregate matching function is shown to exist, and its behavior with respect to changes in parameters such as distances between locations, the agents' payoffs, and the sizes of the populations of searchers on each side of the market is completely characterized.",
    author = "Ricardo Lagos",
    year = "2000",
    doi = "10.1086/317674",
    language = "English (US)",
    volume = "108",
    pages = "851--873",
    journal = "Journal of Political Economy",
    issn = "0022-3808",
    publisher = "University of Chicago",
    number = "5",

    }

    TY - JOUR

    T1 - An alternative approach to search frictions

    AU - Lagos, Ricardo

    PY - 2000

    Y1 - 2000

    N2 - This paper illustrates an alternative approach to modeling search frictions. Frictions are not assumed to exist, but are shown to arise endogenously as a distinctive feature of the set of equilibria that correspond to a particular range of parameter values. The model's spatial structure and the agents' moving decisions are explicitly spelled out, allowing the number of contacts that occur to depend on the way agents choose to locate themselves. An aggregate matching function is shown to exist, and its behavior with respect to changes in parameters such as distances between locations, the agents' payoffs, and the sizes of the populations of searchers on each side of the market is completely characterized.

    AB - This paper illustrates an alternative approach to modeling search frictions. Frictions are not assumed to exist, but are shown to arise endogenously as a distinctive feature of the set of equilibria that correspond to a particular range of parameter values. The model's spatial structure and the agents' moving decisions are explicitly spelled out, allowing the number of contacts that occur to depend on the way agents choose to locate themselves. An aggregate matching function is shown to exist, and its behavior with respect to changes in parameters such as distances between locations, the agents' payoffs, and the sizes of the populations of searchers on each side of the market is completely characterized.

    UR - http://www.scopus.com/inward/record.url?scp=0033653209&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=0033653209&partnerID=8YFLogxK

    U2 - 10.1086/317674

    DO - 10.1086/317674

    M3 - Article

    VL - 108

    SP - 851

    EP - 873

    JO - Journal of Political Economy

    JF - Journal of Political Economy

    SN - 0022-3808

    IS - 5

    ER -