This paper examines the problem of nonexistence of equilibrium in a simple search model with asymmetric information. A pure-strategy, symmetric Nash equilibrium fails to exist because adverse selection arising from steady-state considerations causes a nonconcavity in the payoff function.
Working Paper No. 268
Equilibrium in Search Models with Adverse Selection
Working Paper
Reference
Albrecht, James W. and Susan B. Vroman. (1990). “Equilibrium in Search Models with Adverse Selection”. IFN Working Paper No. 268. Stockholm: Research Institute of Industrial Economics (IFN).
Albrecht, James W. and Susan B. Vroman. (1990). “Equilibrium in Search Models with Adverse Selection”. IFN Working Paper No. 268. Stockholm: Research Institute of Industrial Economics (IFN).
Authors
James W. Albrecht, Susan B. Vroman.
