Ex-ante Price Commitment with Renegotiation in a Dynamic Market Adrian Masters and Abhinay Muthoo


This paper studies a dynamicmodel of amarket such as a labourmarket in which firms post wages and search for workers but trade may occur at a negotiated wage procedure in markets characterized by match-specific heterogeneity. We study a model of a market in which, in each time period, agents on one side (e.g., sellers) choose whether or not to post a price… (More)


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