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 language | English |
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Pages (from-to) | 61-64 |
Journal | Economics Letters |
Volume | 135 |
Issue number | October |
DOIs | |
Publication status | Published - 2015 |