We show that in a modified Mortensen–Pissarides model the bargaining weights depend on the players’ loss-aversion parameters. These weights can hence be calibrated without resorting to an assessment of players’ bargaining powers, which have proved difficult to empirically establish.

Power or loss aversion? Reinterpreting the bargaining weights in search and matching models

MARCHETTI, Enrico;
2013

Abstract

We show that in a modified Mortensen–Pissarides model the bargaining weights depend on the players’ loss-aversion parameters. These weights can hence be calibrated without resorting to an assessment of players’ bargaining powers, which have proved difficult to empirically establish.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11367/23164
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