The Mortensen rule and efficient coordination unemployment
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The Mortensen rule and efficient coordination unemployment. / Julien, Benoit; Kennes, John; King, Ian.
I: Economics Letters, Bind 90, Nr. 2, 2006, s. 149-155.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - The Mortensen rule and efficient coordination unemployment
AU - Julien, Benoit
AU - Kennes, John
AU - King, Ian
N1 - JEL Classification: C78
PY - 2006
Y1 - 2006
N2 - We apply the efficiency axioms of [Mortensen, D. (1982). Efficiency of mating, racing and related games. American Economic Review, 72 968–979.] to a set of matching games involving coordination frictions between buyers. These games include markets with finite numbers of buyers and sellers and markets with infinite numbers of heterogeneous buyers and homogenous sellers. We show that the Mortensen rule, but not the Hosios rule, gives constrained efficient allocations. We also show that the Mortensen rule is implemented by a simple auction
AB - We apply the efficiency axioms of [Mortensen, D. (1982). Efficiency of mating, racing and related games. American Economic Review, 72 968–979.] to a set of matching games involving coordination frictions between buyers. These games include markets with finite numbers of buyers and sellers and markets with infinite numbers of heterogeneous buyers and homogenous sellers. We show that the Mortensen rule, but not the Hosios rule, gives constrained efficient allocations. We also show that the Mortensen rule is implemented by a simple auction
KW - Faculty of Social Sciences
KW - Hosios rule
KW - Mortensen rule
KW - auctions
U2 - 10.1016/j.econlet.2005.07.019
DO - 10.1016/j.econlet.2005.07.019
M3 - Journal article
VL - 90
SP - 149
EP - 155
JO - Economics Letters
JF - Economics Letters
SN - 0165-1765
IS - 2
ER -
ID: 314003