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Unemployment in a Cournot oligopoly model with Ford effects

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Author Info

  • d'ASPREMONT, Claude
  • DOS SANTOS FERREIRA, Rodolphe
  • GERARD-VARET, Louis-André

Abstract

A simple general equilibrium model of imperfect competition is introduced with special attention given to the labour market. An extended Cournot equilibrium is defined for any money wage taken as given by the producers. Under some assumptions involuntary unemployment may arise, that is unemployment whatever the given money wage. Specific examples are considered.

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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 RP with number -858.

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Handle: RePEc:cor:louvrp:-858

Note: In : Recherches Economiques de Louvain, 55(1), 35-60, 1989
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Cited by:
  1. Pierre M. Picard & Eric Toulemonde, 2005. "On Monopolistic Competition and Optimal Product Diversity: a Comment on Cost Structure and Workers' Rents," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.02, Université de Lausanne, Faculté des HEC, DEEP.
  2. Lutz, Stefan & Turrini, Alessandro Antonio, 2000. "Skills, Labour Costs and Vertically Differentiated Industries: A General Equilibrium Analysis," CEPR Discussion Papers 2373, C.E.P.R. Discussion Papers.
  3. Oliver Budzinski & Jürgen-Peter Kretschmer, 2009. "Horizontal Mergers, Involuntary Unemployment, and Welfare," Working Papers 90/09, University of Southern Denmark, Department of Environmental and Business Economics.
  4. Pierre M. Picard & Eric Toulemonde, 2009. "On monopolistic competition and optimal product diversity: workers' rents also matter," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1347-1360, November.
  5. Brito, Paulo B. & Costa, Luís F. & Dixon, Huw, 2013. "Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups," Journal of Economic Dynamics and Control, Elsevier, vol. 37(11), pages 2287-2306.
  6. Costa, Luís F. & Dixon, Huw David, 2010. "Fiscal policy under imperfect competition: A survey," Economics Discussion Papers 2010-14, Kiel Institute for the World Economy.
  7. Costa, Luís F. & Dixon, Huw David, 2011. "Fiscal policy under imperfect competition with flexible prices: An overview and survey," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 5(3), pages 1-57.
  8. Lutz, Stefan & Turrini, Alessandro, 2006. "A general equilibrium model with vertically differentiated industries, skilled labour and trade," Economic Modelling, Elsevier, vol. 23(1), pages 1-19, January.

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