Structure, Behavior, and Market Power in an Evolutionary Labor Market with Adaptive Search

Leigh Tesfatsion ()

Computational Economics from University Library of Munich, Germany

Abstract: This study uses an agent-based computational labor market framework to experimentally study the relationship between job capacity, job concentration, and market power. Job capacity is measured by the ratio of potential job openings to potential work offers, and job concentration is measured by the ratio of work suppliers to employers. For each experimental treatment, work suppliers and employers repeatedly seek preferred worksite partners based on continually updated expected utility, engage in efficiency-wage worksite interactions modelled as prisoner's dilemma games, and evolve their worksite behaviors over time. The main finding is that job capacity consistently trumps job concentration when it comes to predicting the relative ability of work suppliers and employers to exercise market power.

Keywords: Labor market dynamics; Market power; Capacity; Concentration; Adaptive search; Networks; Endogenous interactions; Agent-based computational economics; Evolutionary game (search for similar items in EconPapers)
JEL-codes: C6 C9 D4 D8 J2 J6 L1 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2000-11-11
New Economics Papers: this item is included in nep-evo, nep-net and nep-tid
Note: Type of Document - pdf; prepared on IBM PC - PC-TEX/; to print on HP/PostScript/; pages: 47 ; figures: included
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://econwpa.ub.uni-muenchen.de/econ-wp/comp/papers/0004/0004002.pdf (application/pdf)

Related works:
Working Paper: Structure, Behavior, and Market Power in an Evolutionary Labor Market with Adaptive Search (2009)
Journal Article: Structure, behavior, and market power in an evolutionary labor market with adaptive search (2001)
Working Paper: Structure, Behavior, and Market Power in an Evolutionary Labor Market with Adaptive Search (2001)
Working Paper: Structure, behavior, and market power in an evolutionary labor market with adaptive search (2001)
Working Paper: STRUCTURE, BEHAVIOR, AND MARKET POWER IN AN EVOLUTIONARY LABOR MARKET WITH ADAPTIVE SEARCH (1999)
Working Paper: Structure, Behavior, and Market Power in an Evolutionary Labor Market with Adaptive Search (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpco:0004002

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