One-sided search is an evolutionarily stable outcome in an economy where each buyer and seller can either search or wait, and where the trading mechanism is auction or bargaining. If the relative number of buyers to sellers increases, the likelihood of all sellers wait and all buyers search —equilibrium increases relative to the likelihood of all buyers wait and all sellers search —equilibrium. In two-sided search, bargaining is more efficient than auction. One-sided search is more efficient ∗We thank Pieter Gautier, John Kennes, and participants in SED 2003 meeting for valuable comments.
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