On the Segmentation of Markets

This paper endogenizes the market structure of an economy with heterogeneous agents who want to form bilateral matches in the presence of search frictions and when utility is nontransferable. There exist infinitely many marketplaces, and each agent chooses which marketplace to be in: agents get to c...

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Main Authors: JACQUET, Nicolas Laurent, TAN, Serene
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2007
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Online Access:https://ink.library.smu.edu.sg/soe_research/1129
https://ink.library.smu.edu.sg/context/soe_research/article/2128/viewcontent/SegmentationRevision2.pdf
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spelling sg-smu-ink.soe_research-21282019-04-26T14:08:48Z On the Segmentation of Markets JACQUET, Nicolas Laurent TAN, Serene This paper endogenizes the market structure of an economy with heterogeneous agents who want to form bilateral matches in the presence of search frictions and when utility is nontransferable. There exist infinitely many marketplaces, and each agent chooses which marketplace to be in: agents get to choose not only whom to match with but also whom they meet with. Perfect segmentation is obtained in equilibrium, where agents match with the first person they meet. All equilibria have the same matching pattern. Although perfect assortative matching is not obtained in equilibrium, the degree of assortativeness is greater than in standard models. 2007-09-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/1129 https://ink.library.smu.edu.sg/context/soe_research/article/2128/viewcontent/SegmentationRevision2.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University search matching segmentation market structure Behavioral Economics Finance
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic search
matching
segmentation
market structure
Behavioral Economics
Finance
spellingShingle search
matching
segmentation
market structure
Behavioral Economics
Finance
JACQUET, Nicolas Laurent
TAN, Serene
On the Segmentation of Markets
description This paper endogenizes the market structure of an economy with heterogeneous agents who want to form bilateral matches in the presence of search frictions and when utility is nontransferable. There exist infinitely many marketplaces, and each agent chooses which marketplace to be in: agents get to choose not only whom to match with but also whom they meet with. Perfect segmentation is obtained in equilibrium, where agents match with the first person they meet. All equilibria have the same matching pattern. Although perfect assortative matching is not obtained in equilibrium, the degree of assortativeness is greater than in standard models.
format text
author JACQUET, Nicolas Laurent
TAN, Serene
author_facet JACQUET, Nicolas Laurent
TAN, Serene
author_sort JACQUET, Nicolas Laurent
title On the Segmentation of Markets
title_short On the Segmentation of Markets
title_full On the Segmentation of Markets
title_fullStr On the Segmentation of Markets
title_full_unstemmed On the Segmentation of Markets
title_sort on the segmentation of markets
publisher Institutional Knowledge at Singapore Management University
publishDate 2007
url https://ink.library.smu.edu.sg/soe_research/1129
https://ink.library.smu.edu.sg/context/soe_research/article/2128/viewcontent/SegmentationRevision2.pdf
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