Efficiency of Thin and Thick Markets

Abstract

In this paper, we propose a matching model to study the efficiency of thin and thick markets. Our model shows that the probabilities of matches in a thin market are significantly lower than those in a thick market. When applying our results to a job search model, it implies that, if the ratio of job candidates to job openings remains (roughly) a constant… (More)

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Cite this paper

@inproceedings{Gan2003EfficiencyOT, title={Efficiency of Thin and Thick Markets}, author={Li Gan and Qi Li}, year={2003} }