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  4. June 2017
  5. Sorting through Search and Matching Models in Economics

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

Sorting through Search and Matching Models in Economics

  • Hector Chade
  • Jan Eeckhout
  • Lones Smith
Journal of Economic Literature
vol. 55, no. 2, June 2017
(pp. 493–544)
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Abstract

Toward understanding assortative matching, this is a self-contained introduction to research on search and matching. We first explore the nontransferable and perfectly transferable utility matching paradigms, and then a unifying imperfectly transferable utility matching model. Motivated by some unrealistic predictions of frictionless matching, we flesh out the foundational economics of search theory. We then revisit the original matching paradigms with search frictions. We finally allow informational frictions that often arise, such as in college-student sorting.

Citation

Chade, Hector, Jan Eeckhout, and Lones Smith. 2017. "Sorting through Search and Matching Models in Economics." Journal of Economic Literature, 55 (2): 493–544. DOI: 10.1257/jel.20150777

Additional Materials

JEL Classification

  • C78 Bargaining Theory; Matching Theory
  • D82 Asymmetric and Private Information; Mechanism Design
  • D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
  • I23 Higher Education; Research Institutions
  • J12 Marriage; Marital Dissolution; Family Structure; Domestic Abuse