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Matching and Price Competition / Jeremy Bulow, Jonathan Levin.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Bulow, Jeremy.
Contributor:
National Bureau of Economic Research.
Levin, Jonathan.
Series:
Working Paper Series (National Bureau of Economic Research) no. w11506.
NBER working paper series no. w11506
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2005.
Summary:
We develop a model in which firms set impersonal salary levels before matching with workers.
Salaries fall relative to any competitive equilibrium while profits rise by almost as much, implying
little inefficiency. Furthermore, the best firms gain the most from the system while wages become
compressed. We discuss the performance of alternative institutions and the recent antitrust case
against the National Residency Matching Program in light of our results.
Notes:
Print version record
August 2005.

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