Random decentralized market processes for stable job matchings with competitive salaries

A-Tier
Journal: Journal of Economic Theory
Year: 2016
Volume: 165
Issue: C
Pages: 25-36

Authors (3)

Chen, Bo (not in RePEc) Fujishige, Satoru (not in RePEc) Yang, Zaifu (University of Macau)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze a decentralized process in a basic labor market where finitely many heterogeneous firms and workers meet directly and randomly in pursuit of higher payoffs over time and agents may behave myopically. We find a general random decentralized market process that almost surely converges in finite time to a competitive equilibrium of the market. A key proposition en route to this result exhibits a finite sequence of successive bilateral trades from an arbitrary initial market state to a stable matching between firms and workers with a scheme of competitive salary offers.

Technical Details

RePEc Handle
repec:eee:jetheo:v:165:y:2016:i:c:p:25-36
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29