IDEAS home Printed from https://ideas.repec.org/a/bla/jpbect/v19y2017i4p860-874.html

Democracy and competition: Vertical differentiation and labor in a general equilibrium model

Author

Listed:
  • Amani Kahloul
  • Rim Lahmandi-Ayed
  • Hejer Lasram
  • Didier Laussel

Abstract

We consider a general equilibrium model with vertical preferences and one or two firms, where workers and consumers are differentiated, respectively, by their sensitivity to effort and their preference for quality. The question in this paper is whether a decentralized choice through majority vote would lead to more or less competition. We compare the duopoly and the monopoly cases from the viewpoint of each individual, then we deduce the choice of the majority. We prove that, under concentrated ownership (where owners have a null density), duopoly is always preferred by the majority; while under egalitarian ownership (where firms are equally shared by all the population), the choice of the majority depends on the relative size of workers' and consumers' segments.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Amani Kahloul & Rim Lahmandi-Ayed & Hejer Lasram & Didier Laussel, 2017. "Democracy and competition: Vertical differentiation and labor in a general equilibrium model," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(4), pages 860-874, August.
    • Handle: RePEc:bla:jpbect:v:19:y:2017:i:4:p:860-874
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/jpet.2017.19.issue-4
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rim Lahmandi-Ayed & Didier Laussel, 2020. "A voting model of privatization," Working Papers hal-02504990, HAL.
    2. Lahmandi-Ayed, Rim & Laussel, Didier, 2022. "When do privatizations have popular support? A voting model," Journal of Mathematical Economics, Elsevier, vol. 100(C).
    3. Rim Lahmandi-Ayed & Hejer Lasram & Didier Laussel, 2020. "Is partial privatization of universities a solution for higher education? A successive monopolies model," Working Papers hal-02988323, HAL.
    4. Hend Ghazzai & Wided Hemissi & Rim Lahmandi-Ayed & Sana Kefi, 2020. "A Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences," Working Papers hal-02480175, HAL.
    5. Hend Ghazzai & Wided Hemissi & Rim Lahmandi‐Ayed & Sana Mami Kefi, 2023. "More competition to alleviate poverty? A general equilibrium model and an empirical study," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(5), pages 985-1011, October.
    6. Hend Ghazzai & Wided Hemissi & Rim Lahmandi-Ayed & Sana Mami Kefi, 2021. "Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences," Revue d'économie politique, Dalloz, vol. 131(2), pages 249-261.
    7. Rabah Amir & Hend Ghazzai & Rim Lahmandi-Ayed, 2020. "On the Political Economy of Free Trade," Working Papers hal-02506064, HAL.
    8. Rihab Bellakhal & Hend Ghazzai & Rim Lahmandi‐Ayed, 2024. "Globalisation and informality: The role of quality gap and social contributions," The World Economy, Wiley Blackwell, vol. 47(7), pages 3120-3149, July.
    9. Amani Kahloul & Rim Lahmandi‐Ayed & Hejer Lasram, 2019. "Poverty, competition, democracy, and ownership: A general equilibrium model with vertical preferences," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(6), pages 1143-1178, December.
    10. Rim Lahmandi‐Ayed & Hejer Lasram & Didier Laussel, 2021. "Is partial privatization of universities a solution for higher education?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(6), pages 1174-1198, December.
    11. Rabah Amir & Hend Ghazzai & Rim Lahmandi-Ayed, 2023. "On the political economy of economic integration," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(1), pages 61-100, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jpbect:v:19:y:2017:i:4:p:860-874. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/apettea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.