Research output per year
Research output per year
Abstract
This paper considers a random search model where some locations provide sellers
with better chances of meeting many buyers than other locations (for example popular
shopping streets or the first page of a search engine). When sellers are heterogeneous
in terms of the quality of their product and/or the probability that a given buyer likes
their product, it is desirable that sellers of high-quality niche products sort into the best
locations. We show that this does not always happen in a decentralized market. Finally,
we allow for endogenous location distributions and show that more trades are realized
when locations are similar (in which case the aggregate matching function is urn-ball)
but that quality weighted trade can be higher when locations are heterogeneous.
with better chances of meeting many buyers than other locations (for example popular
shopping streets or the first page of a search engine). When sellers are heterogeneous
in terms of the quality of their product and/or the probability that a given buyer likes
their product, it is desirable that sellers of high-quality niche products sort into the best
locations. We show that this does not always happen in a decentralized market. Finally,
we allow for endogenous location distributions and show that more trades are realized
when locations are similar (in which case the aggregate matching function is urn-ball)
but that quality weighted trade can be higher when locations are heterogeneous.
| Original language | English |
|---|---|
| Publisher | Tinbergen Institute |
| Number of pages | 39 |
| Publication status | Published - 2024 |
Publication series
| Name | TI Discussion Paper Series |
|---|---|
| Volume | 24-015/VIII |
Research output
- 1 Article
-
Spatial search
Cai, X., Gautier, P. & Wolthoff, R., Mar 2025, In: Journal of Economic Theory. 224, p. 1-18 18 p., 105976.Research output: Contribution to Journal › Article › Academic › peer-review
Open Access