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From Wikipedia

In microeconomics, search theory studies buyers or sellers who cannot instantly find a trading partner, and must therefore search for a partner prior to transacting.

Search theory has been influential in many areas of economics. It has been applied in labor economics to analyze frictional unemployment resulting from job hunting by workers.

https://en.m.wikipedia.org/wiki/Search_theory




Yeah, this is why wikipedia is not always the most trustworthy source.

I definitely studied these types of models in macro classes from Pissarides, one of the pioneers in the job search field. I think he'd be amused to learn that he had become a microeconomist.

Also, if you look at the example, it is taken directly out of Sargent's textbook: Recursive Macroeconomic Theory.




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