Matching, search, and bargaining

First, the paper incorporates search for alternative opportunities into a model of strategic bargaining. Second, this search and bargaining model is embedded in a market matching model. The solutions are presented in a manner that clarifies the role of the search abilities and the details of the bargaining procedure in the determination of the outcomes. The predictions of the model are contrasted with the related literature. The main accomplishment is the attainment of a manageable model which is still rich enough to grasp important differences between environments which are not captured by the standard matching models.