From Public Monopsony to Competitive Market: More Efficiency but Higher Prices

Arbeitspapier

This paper examines the consequences of creating a fully competitive market in a sector previously dominated by a cost-minimizing public firm. Workers in the economy are heterogeneous in their intrinsic motivation to work in the sector. In line with empirical findings, our model implies that firms in the competitive market reach higher productivity and employ less workers than the public firm. Allocative efficiency therefore increases. Nevertheless, prices of the sector's output rise as competition between private firms for the best motivated workers leads to higher wage cost than under the public monopsony. Political support for liberalization may therefore be limited.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Tinbergen Institute Discussion Paper ; No. 02-118/1

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: liberalisation ; monopsony power ; incentive wages ; intrinsic motivation ; Monopson ; Öffentliches Unternehmen ; Privatisierung ; Wettbewerb ; Leistungsentgelt ; Leistungsmotivation ; Allokationseffizienz ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Delfgaauw, Josse ; Dur, Robert A.J.
• Ereignis: Veröffentlichung
• (wer): Tinbergen Institute
• (wo): Amsterdam and Rotterdam
• (wann): 2002

Weitere Informationen

• Handle: http://hdl.handle.net/10419/86075
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ