Sorting through Search and Matching Models in Economics
Chade, Eeckhout, and Smith, Journal of Economic Literature, 2017, 55(2), 1–52
Are you teaching an advanced course that explores search and matching? This survey, along with my Frictional Matching Models, constitutes my self-contained lecture notes. It contains many new or unified proofs using monotone comparative statics.
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.