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Coûts de transaction, équilibres multiples avec chômage et concurrence monopolistique. Un réexamen du modèle ws-ps

Ludovic Julien and Nicolas Sanz ()

Revue économique, 2007, vol. 58, issue 2, 311-329

Abstract: The properties of ws-ps model are modified when trade activity is explicitly modelled. Increasing returns to scale can lead to multiple unemployment equilibria in monopolistic competition models. We here introduce transaction costs on the output market to capture multiplicity whatever the degree of returns to scale. The price setting curve can become downward-sloping in the unemployment rate-real wage space. Trading externalities reinforce the effect of strategic complementarities between firms, leading to multiple unemployment equilibria. Moreover, a positive shock on the bargaining power of workers decreases the unemployment rate and the real wage at the low equilibrium, but increases both of them at the high equilibrium. Classification JEL?: D43, E25, J64

JEL-codes: D43 E25 J64 (search for similar items in EconPapers)
Date: 2007
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