IDEAS home Printed from https://ideas.repec.org/a/eee/matsoc/v42y2001i1p31-51.html
   My bibliography  Save this article

Two-sided search and perfect segregation with fixed search costs

Author

Listed:
  • Chade, Hector

Abstract

This paper studies a two-sided search model with the following characteristics: there is a continuum of agents with different types in each population, match utility is nontransferable, and there is a fixed search cost that agents incur in each period. When utility functions are additively separable in types and strictly increasing in the partner's type, there exists a unique matching equilibrium that exhibits perfect segregation as in Smith (1997) and Burdett and Coles (1997); i.e., agents form clusters and mate only within them. The role of additive separability and xed search costs is discussed and contrasted with the discounted case, and an intuitive explanation for the different results obtained in the literature is provided. Also, a simple sufficient condition on the match utility function and the density of types allow us to characterize the duration of the search for each type of agent.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Chade, Hector, 2001. "Two-sided search and perfect segregation with fixed search costs," Mathematical Social Sciences, Elsevier, vol. 42(1), pages 31-51, July.
    • Handle: RePEc:eee:matsoc:v:42:y:2001:i:1:p:31-51
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165-4896(01)00068-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ken Burdett & Randall Wright, 1998. "Two-Sided Search with Nontransferable Utility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 220-245, January.
    2. Ken Burdett & Melvyn G. Coles, 1997. "Marriage and Class," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 141-168.
    3. Rubinstein, Ariel & Wolinsky, Asher, 1985. "Equilibrium in a Market with Sequential Bargaining," Econometrica, Econometric Society, vol. 53(5), pages 1133-1150, September.
    4. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-846, July-Aug..
    5. Laitner, John, 1991. "Modeling Marital Connections among Family Lines," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1123-1141, December.
    6. Becker, Gary S, 1974. "A Theory of Marriage: Part II," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 11-26, Part II, .
    7. Gary S. Becker, 1974. "A Theory of Marriage," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 299-351, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Twisha Chatterjee, 2018. "A model of search and matching with PES intermediation," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 1-36, April.
    2. Burdett, K. & Coles, M. G., 1998. "Separation cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 22(7), pages 1069-1090, May.
    3. Ran Abramitzky & Adeline Delavande & Luis Vasconcelos, 2011. "Marrying Up: The Role of Sex Ratio in Assortative Matching," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 124-157, July.
    4. Davi B. Costa, 2021. "Benefits of marriage as a search strategy," Papers 2108.04885, arXiv.org, revised Aug 2021.
    5. Mazali, Rogério & Rodrigues-Neto, José A., 2013. "Dress to impress: Brands as status symbols," Games and Economic Behavior, Elsevier, vol. 82(C), pages 103-131.
    6. Blanden, Joanne, 2005. "Love and Money: Intergenerational Mobility and Marital Matching on Parental Income," Analytical Studies Branch Research Paper Series 2005272e, Statistics Canada, Analytical Studies Branch.
    7. Samuel Cameron & Alan Collins, 1999. "Looks unimportant? A demand function for male attractiveness by female personal advertisers," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 381-384.
    8. Kelly Bedard & Olivier Deschênes, 2005. "Sex Preferences, Marital Dissolution, and the Economic Status of Women," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
    9. Coles, M & Francesconi, M, 2013. "Equilibrium Search and the Impact of Equal Opportunities for Women," Economics Discussion Papers 9010, University of Essex, Department of Economics.
    10. Bjerk, David, 2009. "Beauty vs. earnings: Gender differences in earnings and priorities over spousal characteristics in a matching model," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 248-259, March.
    11. Francesconi, Marco & Belot, Michèle, 2007. "Can anyone be ‘the’ one? Field evidence on dating behavior," ISER Working Paper Series 2007-17, Institute for Social and Economic Research.
    12. Mario Vozar, 2010. "The Effect of Time in a Multi-Dimensional Marriage Market Model," CERGE-EI Working Papers wp417, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    13. Nicolas Vaillant & François-Charles Wolff, 2011. "Positive and negative preferences in human mate selection," Review of Economics of the Household, Springer, vol. 9(2), pages 273-291, June.
    14. Jaerim Choi, 2021. "Two-sided heterogeneity, endogenous sharing, and international matching markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(2), pages 473-509, September.
    15. Andriana Bellou, 2015. "The impact of Internet diffusion on marriage rates: evidence from the broadband market," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 265-297, April.
    16. Svarer, Michael, "undated". "Determinants of Divorce in Denmark," Economics Working Papers 2002-19, Department of Economics and Business Economics, Aarhus University.
    17. Chen, Frederick H., 2005. "Monotonic matching in search equilibrium," Journal of Mathematical Economics, Elsevier, vol. 41(6), pages 705-721, September.
    18. Paul Butler-Smith & Samuel Cameron & Alan Collins, 1998. "Gender differences in mate search effort: an exploratory economic analysis of personal advertisements," Applied Economics, Taylor & Francis Journals, vol. 30(10), pages 1277-1285.
    19. Kenneth Burdett & Mei Dong & Ling Sun & Randall Wright, 2016. "Marriage, Markets, And Money: A Coasian Theory Of Household Formation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(2), pages 337-368, May.
    20. Green, Tiffany L. & Hamilton, Tod G., 2013. "Beyond black and white: Color and mortality in post-reconstruction era North Carolina," Explorations in Economic History, Elsevier, vol. 50(1), pages 148-159.

    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:matsoc:v:42:y:2001:i:1:p:31-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505565 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.