Talk:Search theory

Hi Tobacman-- Thanks!! very much for separating this out (at one point I think it was just a redirect to the job search page). Calling it "search theory" will allow us to address many recent contributions to economic theory, relating to search for jobs, search for low prices, the distribution of prices and wages, and monetary theory. --Rinconsoleao 10:47, 2 August 2007 (UTC)

Matching theory

• More recently, especially since the 1990s, many economists have been working on integrating job search into models of the macroeconomy, using a framework called 'matching theory' originally developed by Dale Mortensen (1979) and extended by Peter A. Diamond, starting with the famous Diamond critique (1971) and on with many articles starting in 1979, and by Christopher A. Pissarides, starting with "Risk, Job Search, and Income Distribution," Journal of Political Economy 82

(November/December 1974) 1255-68, and on with his "Job Matchings with State Employment Agencies and Random Search," Economic Journal 89 (December 1979) 818-33.

When is this original development supposed to have taken place? In Rotterdam, we were doing this already in the late 1970's. Guido den Broeder (talk) 22:06, 5 May 2008 (UTC)

• Search from one or more unknown distributions is called a multi-armed bandit problem.

I think that this is rather misleading. The exploration of unknown distributions is a problem for a partially-observable markov decision process and decomposing it into a multi-armed bandit is far less than trivial. In a bandit process we search among projects whose dynamics are entirely observable, we merely jump off a project if it takes a bad course. Pychron (talk) 14:58, 30 November 2009 (UTC)

Suggestion

Reading this article, I thought it might be interesting to mention the dynamics of searching for a mate, and the risks and rewards associated with it, if anyone knew of relevant sources to add. Age and female fertility/Virility would be relevant factors. — Preceding unsigned comment added by 71.236.136.184 (talk) 00:19, 19 July 2013 (UTC)

Dr. Teulings's comment on this article

Dr. Teulings has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

* I don't think that the observation that a higher variance makes the job seeker better off is really key to search theory.

• can you add some examples where the Gittins index is applied
• I miss references to thick market and congestion externalities and the Diamond paradox
• I miss a reference to the role of on-the-jo-search. I would explain why the model with on-the-job search does not allow for a single wage rate to be the equilibrium. (its discussed under price distribution, but I would state that more strongly: a single point offer distribution does not exist).

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Dr. Teulings has published scholarly research which seems to be relevant to this Wikipedia article:

• Reference : Gautier, Pieter A. & Teulings, Coen, 2011. "Sorting and the Output Loss Due to Search Frictions," IZA Discussion Papers 5477, Institute for the Study of Labor (IZA).

ExpertIdeasBot (talk) 10:56, 28 May 2016 (UTC)

Dr. Ioannides's comment on this article

Dr. Ioannides has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

Search theory and its various applications received an enormous boost by the success the so-called Phelps volume, Phelps (1970) --- Phelps, Edmund S.; et al. (1970). Microeconomic Foundations of Employment and Inflation Theory. W. W. Norton, New York. ISBN 0-393-09326-3 --- which led the way to numerous aspects of microeconomic foundations of macroeconomics.

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Dr. Ioannides has published scholarly research which seems to be relevant to this Wikipedia article:

• Reference : Yannis M. Ioannides “Market Allocation through Search: Equilibrium Adjustment and Price Dispersion,” Journal of Economic Theory, November, 1975 (11), No. 2, 247-262.

ExpertIdeasBot (talk) 04:53, 16 June 2016 (UTC)

Dr. Altug's comment on this article

Dr. Altug has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

This is a clear entry. I have no further comments.

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We believe Dr. Altug has expertise on the topic of this article, since he has published relevant scholarly research:

• Reference : Sumru Altug & Serdar Kabaca & Meltem Poyraz, 2011. "Search Frictions, Financial Frictions and Labor Market Fluctuations in Emerging Economies," Koc University-TUSIAD Economic Research Forum Working Papers 1136, Koc University-TUSIAD Economic Research Forum.

ExpertIdeasBot (talk) 20:35, 1 July 2016 (UTC)

Dr. Zhou's comment on this article

Dr. Zhou has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

About the part on endogenizing the price distribution, Varian (1980, AER): A model of sales, should be added to the references. A good survey paper on search and matching with a focus on labor market is: Rogerson, Richard, Robert Shimer and Randall Wright. 2005. "Search-Theoretic Models of the Labor Market: A Survey." Journal of Economic Literature, 43(4): 959-988.

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• Reference 1: Mark Armstrong & Jidong Zhou, 2013. "Search Deterrence," Economics Series Working Papers 661, University of Oxford, Department of Economics.

• Reference 2: Chioveanu, Ioana & Zhou, Jidong, 2009. "Price Competition and Consumer Confusion," MPRA Paper 17340, University Library of Munich, Germany.

ExpertIdeasBot (talk) 14:28, 7 July 2016 (UTC)

Dr. Gautier's comment on this article

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More precisely, search theory studies an individual's optimal strategy when choosing from a series of potential opportunities of random quality, under the assumption that delaying choice is costly. Search models illustrate how best to balance the cost of delay against the value of the option to try again. Mathematically, search models are optimal stopping problems, see McCall (1970) and Mortensen (1970).

Macroeconomists have extended search theory by studying general equilibrium models in which one or more types of searchers interact. These macroeconomic theories have been called 'matching theory', or 'search and matching theory', see Diamond (1982) and Rogerson, Shimer and Wright (2005)

Add the following: Directed Search In directed search models, one side of the market commits to the terms of trade and this is observed by the other side. The more attractive those terms are, the longer the queues of expected visitors will be and consequently the greater the probability to match. See Butters (1977) for an application to the goods market example, Albrecht, Gautier and Vroman (2016) for the housing market and Montgomery (1991), Moen (1997) Burdett, Shi and Wright (2001) for the labor market. When it takes some time for firms to screen workers, it becomes attractive to simultaneously apply for multiple jobs, see for example Albrecht, Gautier and Vroman (2006) and Galenianos and Kircher (2009).

References Albrecht James, Pieter A. Gautier and Susan Vroman (2006) Equilibrium directed search with multiple applications, Review of Economic Studies, 73, 869-91. Albrecht James, Pieter A. Gautier and Susan Vroman (2016), Directed Search in the Housing Market, Review of Economic Dynamics, 19, 218-231 Burdett, Kenneth, Shouyong Shi and Randall Wright, Pricing and Matching with Frictions, Journal of Political Economy, 109(5), 1060-85. McCall John (1970), Economics of Information and Job Search, Quarterly Journal of Economics, 84(10): 113-26. Diamond Peter A. (1982), Aggregate Demand Management in Search Equilibrium., Journal of Political Economy, 90(5), 881-94. Galenianos, Manolis and Philipp Kircher (2009), Directed Search with Multiple Job Applications, Journal of Economic Theory, 2009, 114(2), pp. 445-471. Moen, Espen R. (1997), Competitive search equilibrium, Journal of Political Economy, 105(2), 385-411. Montgomery, James D. (1991), Equilibrium Wag Dispersion and Interindustry Wage Differentials, Quarterly Journal of Economics, 106(1), 163-79

Rogerson, Richard, Robert Shimer and Randall Wright (2005), Search theoretic models of the labor market, Journal of Economic Literature, 43-4, 959-88.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

We believe Dr. Gautier has expertise on the topic of this article, since he has published relevant scholarly research:

• Reference 1: Gautier, Pieter A. & Muller, Paul & van der Klaauw, Bas & Rosholm, Michael & Svarer, Michael, 2012. "Estimating Equilibrium Effects of Job Search Assistance," IZA Discussion Papers 6748, Institute for the Study of Labor (IZA).

• Reference 2: Gautier, Pieter A. & Teulings, Coen, 2011. "Sorting and the Output Loss Due to Search Frictions," IZA Discussion Papers 5477, Institute for the Study of Labor (IZA).

ExpertIdeasBot (talk) 20:20, 24 September 2016 (UTC)