Existence of a non-stationary equilibrium in search-and-matching models: TU and NTU

Sandmann, Christopher ORCID: 0009-0005-4697-2635 and Bonneton, Nicolas (2025) Existence of a non-stationary equilibrium in search-and-matching models: TU and NTU. Theoretical Economics. ISSN 1933-6837 (In Press)

Text (Sandmann-Bonneton_Existence-of-a-Non-Stationary-Equilibrium_April_2025 (002)) - Accepted Version Pending embargo until 1 January 2100. Download (623kB)

Abstract

This paper proves the existence of a non-stationary equilibrium in the canonical search-and-matching model with heterogeneous agents. Nonstationarity entails that the number and characteristics of unmatched agents evolve endogenously over time. An equilibrium exists under minimal regularity conditions and for both paradigms considered in the literature: transferable and non-transferable utility. To address potential discontinuities in match opportunities across types, our analysis introduces a generalized Schauder fixed-point theorem suitable for models with discontinuous value functions.

Item Type:	Article
Additional Information:	© 2025 The Author(s)
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory
Date Deposited:	08 May 2025 09:48
Last Modified:	19 May 2025 16:03
URI:	http://eprints.lse.ac.uk/id/eprint/128071

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