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, 20 (4). 1411 - 1460. ISSN 1933-6837

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Abstract

This paper proves the existence of a non-stationary equilibrium in the canonical search-and-matching model with heterogeneous agents. Non-stationarity 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 Authors
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory; Matching Theory D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
Date Deposited:	08 May 2025 09:48
Last Modified:	26 Nov 2025 08:36
URI:	http://eprints.lse.ac.uk/id/eprint/128071

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