Title: Efficiency of thin and thick markets
Description: "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"--National Bureau of Economic Research web site.
Subjects: Efficient market theory, Job hunting, Labor market, Mathematical models