Minimum prices in a model with search frictions and price posting

摘要

In this paper I consider the effects of a minimum price (maximum wage) in a random search model with price (wage) posting. I show that with a minimum price, the price distribution will have a mass point. If the minimum price is sufficiently high, the price distribution will become degenerate. (c) 2015 Elsevier B.V. All rights reserved.