EconPapers    
Economics at your fingertips  
 

Efficiency Wages in a Cournot-Oligopoly

Marco de Pinto () and Laszlo Goerke ()
Additional contact information
Marco de Pinto: Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University

No 201807, IAAEU Discussion Papers from Institute of Labour Law and Industrial Relations in the European Union (IAAEU)

Abstract: 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

Keywords: Oligopoly; Efficiency Wages; Excessive Entry; Welfare (search for similar items in EconPapers)
JEL-codes: D43 J31 L13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com and nep-lma
Date: 2018-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://iaaeu.de/images/DiscussionPaper/2018_07.pdf First version, 2018 (application/pdf)

Related works:
Working Paper: Efficiency Wages in Cournot-Oligopoly (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iaa:dpaper:201807

Access Statistics for this paper

More papers in IAAEU Discussion Papers from Institute of Labour Law and Industrial Relations in the European Union (IAAEU) Contact information at EDIRC.
Bibliographic data for series maintained by Adrian Chadi ().

 
Page updated 2019-08-23
Handle: RePEc:iaa:dpaper:201807