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Downsizing, X-Efficiency. and Social Efficiency

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Author Info
Pompermaier, A.
Abstract

In this paper a theoretical framework is provided to link firm efficiency to product market competition. In particular x-efficienct is shown to arise to the extent unions directly affect the level of employment. A positive relationship is established between social efficiency and x-efficiency, whereby both are at their lowest level when firms can freely adjust size of the workforce. Finally profits (employment/production) are shown to be not necessarily decreasing (increasing) in the degree of competition.

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Publisher Info
Paper provided by University of Hamburg, Institute of Economics in its series Faechergruppe Volkswirtschaftlehre with number 110.

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Length: 11 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:hambec:110

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Postal: Institute of Economics, University of Hamburg, Von-Melle-Park 5, D-20146 Hamburg F.R.G
Phone: +49 (0)40 6541 2590
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Web page: http://www.hsu-hh.de/fgvwl/
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Related research
Keywords: MARKET STRUCTURE ; EFFICIENCY ; BUSINESS ORGANIZATION;

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
D40 - Microeconomics - - Market Structure and Pricing - - - General

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This page was last updated on 2009-12-16.


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