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

In this paper, I construct an equilibrium for markets with frictions, which is competitive in the sense that all agents are price takers and maximize utility subject to a set of market parameters. I show that the equilibrium allocation is socially optimal. I also show how the competitive search equilibrium can be achieved if employers with vacancies can advertise publicly the wages they pay.

Competitive Search Equilibrium

Introduction to Mathematical Statistics. By R.V. Hogg and A. T. Craig. Pp. ix, 245. 47s. 1959. (The Macmillan Company, New York)

Objective. The objective of the course is to introduce the modeling of heterogeneous agents economies, learn about economies with incomplete markets, and search and matching frictions. In the first part of the course, the student will familiarize with the modern quantitative techniques used in macroeconomics, and will be exposed to important research questions in macroeconomics. In addition, the course will review some of the numerical methods used to solve heterogeneous agents economies with incomplete markets.

Advanced Macroeconomics I

This Pulse Check is a report of national trends in illicit drug abuse and drug markets in the United States. The report draws on conversations with ethnographers and epidemiologists working in the drug field, law enforcement agents, and drug treatment providers across the United States. Information from each of these sources is summarized in narrative form broken down by drug type and presented in detailed tables at the end of the report. The four groupings of drugs are heroin, cocaine, marijuana, and emerging drugs. Results show that the market for heroin and cocaine remains fairly stable. Marijuana continues to be popular among young people and is frequently used with alcohol, hallucinogens, cocaine, or methamphetamines. Among the emerging drugs, methamphetamine continues to be a problem in the West and parts of the South, its low price making it an easily accessible drug. "Club drugs," such as Lysergic Acid Diethylamide (LSD) and Ketamine, are part of the drug scene in most areas, with many young people using a combination of these substances. (RJM) ******************************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. ******************************************************************************** Office of National Drug Control Policy PULSE CHECK National Trends in Drug Abuse Executive Office of the President Office of National Drug Control Policy Barry R. McCaffrey, Director

Office of national drug control policy

http://eprints.lse.ac.uk/29702/1/Directed_search_with_multiple_job_applications_(LSERO).pdf

Directed Search with Multiple Job Applications

https://www.nottingham.ac.uk/cfcm/documents/seminars/2013-14/03-04-14-galenianos.pdf

Hiring through referrals

A search-theoretic model of the retail market for illegal drugs is developed. Trade occurs in bilateral, potentially long-lived matches between sellers and buyers. Buyers incur search costs when experimenting with a new seller. Moral hazard is present because buyers learn purity only after a trade is made. The model produces testable implications regarding the distribution of purity offered in equilibrium, and the duration of the relationships between buyers and sellers. These predictions are consistent with available data. The effectiveness of different enforcement strategies is evaluated, including some novel ones which leverage the moral hazard present in the market.

A Search-Theoretic Model of the Retail Market for Illegal Drugs

A theoretical model of the labor market is developed to study the firm's decision to use referrals as a hiring method. The labor market is characterized by search frictions and uncertain quality of the match between a worker and a job. Using referrals increases the arrival rate of applicants and provides more accurate signals regarding a worker's suitability for the job. The latter informational advantage leads to predictions regarding the correlation of a referral with wages, productivity and separation rates that are consistent with the data. The model is extended by introducing heterogeneity in firm productivity and allowing the endogenous determination of signal accuracy. In equilibrium, high productivity firms choose greater accuracy of signals which diminishes the informational advantage of referrals. This generates the predictions that high productivity firms use referrals to a lesser extent which biases wage regressions that ignore firm fixed effects.

Manolis Galenianos

Papers

Directed Search with Multiple Job Applications

Hiring through referrals

A Search-Theoretic Model of the Retail Market for Illegal Drugs

Learning About Match Quality and the Use of Referrals

Learning about match quality and the use of referrals