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Arrow, K.J. (1962) Economic Welfare and the Allocation of Resources for Invention. In: Nelson, R.R., Ed., The Rate and Direction of Inventive Activity, Princeton University Press, Princeton, 609-626.

has been cited by the following article:

• TITLE: Financial Intermediaries in a Search Theoretic Model of Bilateral Exchange

  AUTHORS: Andrew C. Chang

  KEYWORDS: Search Theory

  JOURNAL NAME: Theoretical Economics Letters, Vol.5 No.1, January 30, 2015

  ABSTRACT: This note investigates an effect of financial intermediaries on bilateral exchange. In a search theoretic framework, it is possible for Pareto inefficient outcomes in bilateral exchanges between firms and laborers, when firms are forced to secure liquidity through financial intermediaries and are unable to communicate the value of the firm to the intermediary. The quantity of labor supplied to firms in the model is below the Pareto optimal level.