Arbeitspapier

The law of attraction bilateral search and horizontal heterogeneity

We study a matching model with heterogeneous agents, nontransferable utility and search frictions. Agents differ along a horizontal dimension (e.g. taste) and a vertical dimension (e.g. income). Agents' preferences coincide only in the vertical dimension. This approach introduces individual preferences in this literature as seems suitable in applications like labor markets (e.g. regional preferences). We analyze how the notion of assortativeness generalizes to integration or segregation outcomes depending on search frictions. Contrary to results from the purely vertical analysis, here, agents continuously adjust their reservation utility strategies to changing search frictions. The model is easily generalizable in the utility specification, the distribution of taste-related payoffs and the number of vertical types. Extreme utility specifications can be treated as a case of horizontal heterogeneity only.

Sprache
Englisch

Erschienen in
Series: SFB 649 Discussion Paper ; No. 2011-017

Klassifikation
Wirtschaft
Household Production and Intrahousehold Allocation
Allocative Efficiency; Cost-Benefit Analysis
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
Thema
matching
horizontal differentiation
marriage markets
Ehe
Suchtheorie
Matching
Präferenztheorie
Theorie

Ereignis
Geistige Schöpfung
(wer)
Hofmann, Dirk
Qari, Salmai
Ereignis
Veröffentlichung
(wer)
Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk
(wo)
Berlin
(wann)
2011

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hofmann, Dirk
  • Qari, Salmai
  • Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk

Entstanden

  • 2011

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