@techreport{NBERw11506,
 title = "Matching and Price Competition",
 author = "Jeremy Bulow and Jonathan Levin",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "11506",
 year = "2005",
 month = "August",
 URL = "http://www.nber.org/papers/w11506",
 abstract = {We develop a model in which firms set impersonal salary levels before matching with workers.
Salaries fall relative to any competitive equilibrium while profits rise by almost as much, implying
little inefficiency. Furthermore, the best firms gain the most from the system while wages become
compressed. We discuss the performance of alternative institutions and the recent antitrust case
against the National Residency Matching Program in light of our results.},
}