Workers’skills and product selection

Jean Gabszewicz and Alessandro Turrini

No 1999006, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: When the production of high quality goods needs the employment of qualified labour, firms’ decisions concerning quality are affected by the extent to which skills are abundant. By means of a comparison between monopoly and perfect competition, we show how market power in such a context may entail a distorsion in product selection towards too high average quality

Keywords: product selection; vertical differentiation; market power; human capital (search for similar items in EconPapers)
JEL-codes: D4 J24 L13 L15 (search for similar items in EconPapers)
Date: 1999-01-01
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Workers' Skills and Product Selection (1999)
Working Paper: Workers'skills and product selection (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:1999006

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