Directed Search: A Guided Tour

This essay surveys the literature on directed/competitive search, covering theory and applications in, e.g., labor, housing and monetary economics. These models share features with traditional search theory, yet differ in important ways. They share features with general equilibrium theory, but with explicit frictions. Equilibria are typically efficient, in part because markets price goods plus the time required to get them. The approach is tractable and arguably realistic. Results are presented for finite and large economies. Private information and sorting with heterogeneity are analyzed. Some evidence is discussed. While emphasizing issues and applications, we also provide several hard-to-find technical results.

Keywords: competitive search, directed search, job search, survey, Wage setting

JEL Classification: J3, J64

Suggested Citation: Suggested Citation

Guerrieri, Veronica and Julien, Benoît and Wright, Randall D., Directed Search: A Guided Tour (September 2017). CEPR Discussion Paper No. DP12315, Available at SSRN: https://ssrn.com/abstract=3042626

Veronica Guerrieri (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Benoît Julien

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

Randall D. Wright

University of Wisconsin - Madison - Department of Finance, Investment and Banking ( email )

975 University Avenue
Madison, WI 53706
United States
608-263-3860 (Phone)

Federal Reserve Banks - Federal Reserve Bank of Minneapolis

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