Specialization, Matching Intensity and Income Inequality of Sellers

Eleftheriou, Konstantinos and Polemis, Michael (2016): Specialization, Matching Intensity and Income Inequality of Sellers.

Abstract

We develop a simple model with heterogeneous agents and search frictions to study how increases in matching intensity between buyers and sellers determine the level of income inequality among sellers. Our findings indicate that a reduction in search frictions leads to higher inequality and induces buyers to purchase goods and services only from specialized sellers.

• Item Type: MPRA Paper
• Language: English
• Keywords: game theory; income inequality; matching; technology; value functions
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory ; Matching Theory; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O30 - General

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