- Traditional search theory assumes search frictions are part of the technology; search frictions are imposed by the environment.
- We introduce the idea that search frictions may be the consequence of a deliberate choice.
- Our leading example is the angel capital market, a large market for arms-length entrepreneurial finance.
- In our model entrepreneurs engage in costly search for financiers as these financiers choose to make themselves hard to find.
- Entrepreneurs signal (high) productivity by engaging in costly search for financiers.
H/t Tyler Cowen.