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Indiana University Bloomington


The Kelley Advantage

The department is home to the authors of Managerial Economics and Business Strategy and Games and Information: An Introduction to Game Theory, two of the nation’s leading textbooks in the field.

Research and Publications

Journal Articles

Nonstandard Foundations of Equilibrium Search Models

2007, Journal of Economic Theory

Michael T. Rauh


We develop an equilibrium sequential search model which includes most of the literature as special cases. In particular, the model can accommodate heterogeneity in buyers’ search costs and demand functions and firms’ cost functions, with general demand and cost functions. We identify conditions which ensure existence of equilibrium in pure strategies, utilizing recent progress in the theory of large games by Khan and Sun. These conditions elucidate the essential structure of equilibrium search models. Although we focus on sequential search, our methodology can be used for other classes of equilibrium search models as well.


Rauh, Michael T. (2007), "Nonstandard Foundations of Equilibrium Search Models,'' Journal of Economic Theory, Vol. 132, No.1, pp. 518-529.


Search; Equilibrium search models; Nonstandard analysis