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increasing returns and strategic behavior:the worker/firm ratio

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  • spyros vassilakis

    (AUEB)

Abstract

This article presents a model of an increasing returns economy in which each agent is allowed to choose his occupation; he can be a worker or an employer. It is shown that as the number of agents increases to infinity, the proportion of employers in the population approaches zero. A large economy can be a competitive economy, a natural oligopoly, or a natural monopoly, depending upon the asymptotic significance of scale economies. Replication does not eliminate the per capita welfare loss due to imperfect competition in the natural oligopoly case. The asymptotic behavior of income per head and its functional distribution are also discussed.

(This abstract was borrowed from another version of this item.)

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File URL: http://128.118.178.162/eps/io/papers/0211/0211022.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Industrial Organization with number 0211022.

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Date of creation: 12 Nov 2002
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Handle: RePEc:wpa:wuwpio:0211022

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Keywords: increasing returns to scale; firm size;

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Cited by:
  1. Berliant, M. & Raa, T. ten, 1997. "Increasing returns and perfect competition: The role of land," Discussion Paper 1997-75, Tilburg University, Center for Economic Research.
  2. Thomas J. Holmes, 1995. "Localization of industry and vertical disintegration," Staff Report 190, Federal Reserve Bank of Minneapolis.
  3. Andrew F. Newman, 1991. "The Capital Market," Discussion Papers 951, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Jain, Amit, 2011. "Connaissance, ressources, concurrence et les frontières de l'entreprise," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/6403 edited by Thiétart, Raymond-Alain, November.
  5. Gans, Joshua S., 1998. "Time Lags and Indicative Planning in a Dynamic Model of Industrialization," Journal of the Japanese and International Economies, Elsevier, vol. 12(2), pages 103-130, June.
  6. Berliant, M. & Raa, T. ten, 2003. "Increasing returns to scale and perfect competition: The role of land," Open Access publications from Tilburg University urn:nbn:nl:ui:12-119482, Tilburg University.

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