A note on indeterminacy of unemployment equilibrium

Juha Virrankoski

Economics Letters, 2025, vol. 246, issue C

Abstract: According to Mortensen (1989), increasing returns to scale in matching may cause multiple equilibria if collective bargaining or efficiency wage is applied. I show that a unique equilibrium exists, also if the Nash bargaining solution is used, if productivity is constant.

Keywords: Search; Matching; Wages; Multiple equilibria (search for similar items in EconPapers)
JEL-codes: E24 J30 J64 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:246:y:2025:i:c:s0165176524005755

DOI: 10.1016/j.econlet.2024.112091

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