Efficiency of thin and thick markets Academic Article uri icon


  • 2015 Elsevier B.V. In this paper, we propose a matching model to study the efficiency of thin and thick markets. Our model shows that the probabilities of matches in a thin market are significantly lower than those in a thick market. When applying our results to a job search model, it implies that, if the ratio of job candidates to job openings remains (roughly) a constant, the probability that a person can find a job is higher in a thick market than in a thin market. We apply our matching model to the U.S. academic market for new PhD economists. Consistent with the prediction of our model, a field of specialization with more job openings and more candidates has a higher probability of matching.

published proceedings


altmetric score

  • 11.5

author list (cited authors)

  • Gan, L. i., & Li, Q. i.

citation count

  • 11

complete list of authors

  • Gan, Li||Li, Qi

publication date

  • January 2016