Arbeitspapier
Efficiency Wages in Cournot-Oligopoly
In a Cournot-oligopoly with free but costly entry and business stealing, output per firm is too low and the number of competitors excessive, assuming labor productivity to depend on the number of employees only or to be constant. However, a firm can raise the productivity of its workforce by paying higher wages. We show that such efficiency wages accentuate the distortions occurring in oligopoly. Specifically, excessive entry is aggravated and the welfare loss due to market power rises.
- Language
-
Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 12351
- Classification
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Wage Level and Structure; Wage Differentials
Oligopoly and Other Imperfect Markets
- Subject
-
oligopoly
efficiency wages
excessive entry
welfare
- Event
-
Geistige Schöpfung
- (who)
-
de Pinto, Marco
Goerke, Laszlo
- Event
-
Veröffentlichung
- (who)
-
Institute of Labor Economics (IZA)
- (where)
-
Bonn
- (when)
-
2019
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- de Pinto, Marco
- Goerke, Laszlo
- Institute of Labor Economics (IZA)
Time of origin
- 2019
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