On Monopolistic Competition and Involuntary Unemployment
In a simple temporary general equilibrium model, it is shown that, if the number of firms is small, imperfect price competition in the markets for goods may be responsible for the existence of unemployment at any given positive wage. In our examples involving two firms facing their "true" demand curves, total monopolistic labor demand remains bounded as the wage rate goes to zero, and unemployment prevails for a sufficiently large inelastic labor supply. In the competitive case total labor demand would go to infinity and intersect labor supply at a positive wage.
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Volume (Year): 105 (1990)
Issue (Month): 4 ()
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- d'ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe & GERARD-VARET, Louis-André, "undated". "On monopolistic competition and involuntary unemployment," CORE Discussion Papers RP 909, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- d’ASPREMONT, C. & DOS SANTOS FERREIRA, R. & GERARD-VARET, L.-A., 1986. "On monopolistic competition and involuntary unemployment," CORE Discussion Papers 1986035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Murata, Yasusada, 2002. "Rural-urban interdependence and industrialization," Journal of Development Economics, Elsevier, vol. 68(1), pages 1-34, June.
- d'Aspremont, Claude & Dos Santos Ferreira, Rodolphe & Gerard-Varet, Louis-Andre, 1997.
"General Equilibrium Concepts under Imperfect Competition: A Cournotian Approach,"
Journal of Economic Theory,
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- d'ASPREMONT, C. & DOS SANTOS FERREIRA, R. & ÉRARD-VARET, L.-A., "undated". "General equilibrium concepts under imperfect competition: a Cournotian approach," CORE Discussion Papers RP 1259, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- D'ASPREMONT, Claude & DOS SANTOS, R. & GÉRARD-VARET, Louis-André, 1992. "General equilibrium concepts under imperfect competition: a Cournotion approach," CORE Discussion Papers 1992057, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- D'Aspremont, C. & Dos Santos Ferreira, R. & Gerard-Varet, L.A., 1992. "General Equilibrium Concepts Under Imperfect Competition: A Cournotien Approach," G.R.E.Q.A.M. 92a03, Universite Aix-Marseille III.
- Mario Amendola & Jean-Luc Gaffard & Francesco Saraceno, 2004. "Wage Flexibility and Unemployment: The Keynesian Perspective Revisited," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 654-674, November.
- Mario Amendola & Jean-Luc Gaffard & Francesco Saraceno, 2001. "Wage Flexibility and Unemployment : the Keynesian Perspective Revisited," Sciences Po publications 2001-02, Sciences Po.
- Mario Amendola & Jean-Luc Gaffard & Francesco Saraceno, 2001. "Wage Flexibility and Unemployment : the Keynesian Perspective Revisited," Working Papers hal-01064972, HAL.
- Mario Amendola & Jean-Luc Gaffard & Francesco Saraceno, 2001. "Wage Flexibility and Unemployment: The Keynesian Perspective Revisited," Documents de Travail de l'OFCE 2001-02, Observatoire Francais des Conjonctures Economiques (OFCE).
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- d’ASPREMONT, Claude & DOS SANTOS FERRERIA, Rodolphe, 2015. "Oligopolistic vs. monopolistic competition: do intersectoral effects matter?," CORE Discussion Papers 2015002, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- 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.
- Oliver Budzinski & Jürgen-Peter Kretschmer, 2009. "Horizontal Mergers, Involuntary Unemployment, and Welfare," MAGKS Papers on Economics 200907, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
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