Seminar

The Marriage Problem with Search Frictions

Georg Noeldeke (University of Basel)

April 5, 2011, 11:00–12:30

Toulouse

Room Amphi S

Economic Theory Seminar

Abstract

We embed the classical marriage problem in a search model with bilateral meetings and investigate the limit behavior of steady state equilibria as search frictions become negligible. All stable matchings are limit outcomes, but unless there is a unique stable matching there are also unstable, fractional matchings that appear in the limit.