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Oligopsony and Minimum Wages

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  • Hern√°n Vallejo

Abstract

This article presents a model of oligopsony. It considers different conjectural variations that cover the whole range between the extreme cases of monopsony and perfect competition, such as Collusion, Threat, Cournot, Stackelberg, and Bertrand, and compares them in terms of prices, quantities, profits, mark-down, price elasticity of supply and welfare. It also considers the impact of minimum wages, under the different conjectures analyzed.

Suggested Citation

  • Hern√°n Vallejo, 2021. "Oligopsony and Minimum Wages," Documentos CEDE 19140, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:019140
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    File URL: https://repositorio.uniandes.edu.co/bitstream/handle/1992/49603/dcede2021-13.pdf
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    References listed on IDEAS

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    1. Atkinson, Scott E & Kerkvliet, Joe, 1989. "Dual Measures of Monopoly and Monopsony Power: An Application to Regulated Electric Utilities," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 250-257, May.
    2. Richard T. Rogers & Richard J. Sexton, 1994. "Assessing the Importance of Oligopsony Power in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1143-1150.
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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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