Matching and Price Competition: Comment
نویسنده
چکیده
We relax the assumption of symmetric linear costs in B&L’s (2006) “Matching and Price Competition” and compare the pricing equilibrium that results to the firmoptimal competitive equilibrium. With linear and asymmetric costs, competition may not be localized in the pricing equilibrium, but all other qualitative comparisons of B&L (2006) hold. With non-linear and symmetric costs workers’ average utility in the pricing equilibrium may be higher than in the firm-optimal competitive equilibrium. With asymmetric and non-linear costs, firms need not choose scores from an interval in a pricing equilibrium, which may make competition even less localized.
منابع مشابه
Matching and price competition: beyond symmetric linear costs
Bulow and Levin’s (2006) “Matching and Price Competition” studies a matching model in which hospitals compete for interns by offering wages. We relax the assumption of symmetric linear costs and compare the pricing equilibrium that results to the firm-optimal competitive equilibrium. With linear and asymmetric costs, competition in the pricing equilibrium may not be localized, but all other qua...
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