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Workers’skills and product selection

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  • GABSZEWICZ, Jean

    ()
    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE). 1348 Louvain la Neuve, Belgium)

  • TURRINI, Alessandro

    (University of Bergamo, Italy and Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Belgium)

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

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1999006.

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Date of creation: 01 Jan 1999
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Handle: RePEc:cor:louvco:1999006

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Keywords: product selection; vertical differentiation; market power; human capital;

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References

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  1. John M. ABOWD & Françis KRAMARZ & Antoine MOREAU, 1996. "Product Quality and Worker Quality," Annales d'Economie et de Statistique, ENSAE, issue 41-42, pages 299-322.
  2. repec:sae:niesru:v:111:y::i:1:p:48-61 is not listed on IDEAS
  3. Lionel Fontagné & Michaël Freudenberg & Nicolas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center.
  4. Nancy L. Stokey, 1990. "Human Capital, Product Quality, and Growth," Discussion Papers 883, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  5. Gabszewicz, J. & Turrini, A., 2000. "Workers' skills, product quality and industry equilibrium," International Journal of Industrial Organization, Elsevier, vol. 18(4), pages 575-593, May.
  6. repec:sae:niesru:v:128:y::i:1:p:40-57 is not listed on IDEAS
  7. Acemoglu, D., 1994. "Search in the Labor market: Incomplete Contracts and Growth," Working papers 94-23, Massachusetts Institute of Technology (MIT), Department of Economics.
  8. Spence, Michael, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Wiley Blackwell, vol. 43(2), pages 217-35, June.
  9. Courakis, Anthony S, 1991. "Labour Skills and Human Capital in the Explanation of Trade Patterns," Oxford Economic Papers, Oxford University Press, vol. 43(3), pages 443-62, July.
  10. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
  11. Webster, Allan, 1993. "The Skill and Higher Educational Content of UK Net Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(2), pages 141-59, May.
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Cited by:
  1. BACCHIEGA, Emanuele, 2004. "Vertical differentiation, wage bargaining and intra-industry trade liberalization," CORE Discussion Papers 2004028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Margherita Scarlato & Marisa Cenci, 2004. "Istituzioni e mercato del lavoro nel Mezzogiorno d'Italia: un'analisi dinamica," GE, Growth, Math methods 0402002, EconWPA.
  3. Emanuele Bacchiega, 2007. "Wage bargaining and vertical differentiation," International Review of Economics, Springer, vol. 54(1), pages 35-52, March.
  4. E. Bacchiega & A. Minniti, 2013. "Training and Product Quality in Unionized Oligopolies," Working Papers wp871, Dipartimento Scienze Economiche, Universita' di Bologna.

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