The author systematically examines one of the important issues of information — establishing the market price. He introduces the concept of «search» — where a buyer wanting to get a better price, is forced to question sellers. The article deals with various aspects of finding the necessary information.

Economics of Information

Part 1 Unemployment in the model of balanced growth: the labour market long-run equilibrium and balanced growth adjustment dynamics. Part 2 further ananlysis of the labour market: search intensity and job advertising.

Equilibrium Unemployment Theory

This paper surveys the microfoundations, empirical evidence, and estimation issues underlying the aggregate matching function. There is no consensus yet on microfoundations but one is emerging on estimation. An aggregate, constant returns, Cobb-Douglas matching function with hires as a function of vacancies and unemployment has been successfully estimated for several countries. Recent work has utilized disaggregated data to go beyond aggregate estimates, with many refinements and suggestions for future research. The paper discusses spatial aggregation issues, and implications of on-the-job search and of the timing of stocks and flows for estimated matching functions.

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Looking into the Black Box: A Survey of the Matching Function

This handbook chapter studies the theoretical micro-foundations of urban agglomeration economies. We distinguish three types of micro-foundations, based on sharing, matching, and learning mechanisms. For each of these three categories, we develop one or more core models in detail and discuss the literature in relation to those models. This allows us to give a precise characterisation of some of the main theoretical underpinnings of urban agglomeration economies, to discuss modelling issues that arise when working with these tools, and to compare different sources of agglomeration economies in terms of the aggregate urban outcomes they produce as well as in terms of their normative implications.

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Micro-Foundations of Urban Agglomeration Economies

A Model of Sales.

Focuses on the formulation of equilibrium distributions of sales and advertising prices. Development of a model in which sellers have constant average cost curves; Approach to prove assumptions on consumer preferences; Description of the basic model of consumer pricing. (Из Ebsco)

Equilibrium Distributions of Sales and Advertising Prices

Market allocation through search: Equilibrium adjustment and price dispersion: Comment

Publisher Summary This chapter presents a model in which sellers have constant average cost curves, buyers are transient and buy one unit each in a single purchase, and the only possible information flow is through advertising. The chapter also discusses the market's efficiency in transmitting information. Advertising may be interpreted more or less broadly to incorporate any selection of the usual advertising expenses, displays, promotions, packaging, rent for conspicuous locations, and the like. The assumption of a homogeneous good rules out all problems concerning quality differences, jointly provided services, locational convenience, and the like. The assumption that all agents know the price distribution is especially difficult to accept.

Gerard R. Butters

Papers

Equilibrium Distributions of Sales and Advertising Prices

Market allocation through search: Equilibrium adjustment and price dispersion: Comment

Equilibrium Distributions of Sales and Advertising Prices