On Equilibrium in Monopolistic Competition with Endogenous Labor

Alexey Kushnir, Alexander Tarasov and Robertas Zubrickas

No 8360, CESifo Working Paper Series from CESifo

Abstract: We consider a model of monopolistic competition with several heterogeneous sectors and endogenous labor supply. For low (high) values of the labor supply elasticity, we show that there is always a unique equilibrium. For medium values of the labor supply elasticity, the set of equilibria (if non-empty) can comprise of several equilibria, with the number of equilibria bounded by the number of sectors.

Keywords: labor elasticity; multiple equilibria; stability (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 2020
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Journal Article: On equilibrium in monopolistic competition with endogenous labor (2021)
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