Minimum prices in a model with search frictions and price posting

X. Cai

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

In this paper I consider the effects of a minimum price (maximum wage) in a random search model with price (wage) posting. I show that with a minimum price, the price distribution will have a mass point. If the minimum price is sufficiently high, the price distribution will become degenerate.
Original languageEnglish
Pages (from-to)61-64
JournalEconomics Letters
Volume135
Issue numberOctober
DOIs
Publication statusPublished - 2015

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