The Marriage Model With Search Frictions

Posted: 12 Dec 2006

See all articles by Lones Smith

Lones Smith

University of Wisconsin at Madison - Department of Economics

Multiple version iconThere are 2 versions of this paper

Abstract

Consider a heterogeneous agent matching model in which the payoff of each matched individual is a fixed function of both partners' types. In a 1973 article, Becker showed that assortative matching arises in a frictionless setting simply if everyone prefers higher partners. This paper shows that if finding partners requires time-consuming search and individuals are impatient, then productive interaction matters. Matching is positively assortative - higher types match with higher sets of types - when the proportionate gains from having better partners rise in one's type. With multiplicatively separable payoffs, these proportionate gains are constant in one's type, and "block segregation" arises, a common finding of the literature.

Suggested Citation

Smith, Lones, The Marriage Model With Search Frictions. Journal of Political Economy, Vol. 114, pp. 1124-1144, December 2006, Available at SSRN: https://ssrn.com/abstract=951228

Lones Smith (Contact Author)

University of Wisconsin at Madison - Department of Economics ( email )

1180 Observatory Drive
Madison, WI 53706-1393
United States
608-263-3871 (Phone)
608-262-2033 (Fax)

HOME PAGE: http://www.lonessmith.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
700
PlumX Metrics