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Equilibres multiples avec chômage, coûts de transaction et concurrence monopolistique

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  • Ludovic Alexandre Julien
  • Nicolas Sanz

Abstract

The properties of WS-PS model are modified when trade activity is explicitly modelled. We introduce transaction costs on the output market to capture multiplicity whatever the degree of returns to scale. The price setting curve can become downward-sloping in the unemployment rate-real wage space. Trading externalities reinforce the effect of strategic complementarities between firms, leading to multiple unemployment equilibria. Moreover, a positive shock on the bargaining power of workers decreases the unemployment rate and the real wage at the low equilibrium, but increases both of them at the high equilibrium.

Suggested Citation

  • Ludovic Alexandre Julien & Nicolas Sanz, 2006. "Equilibres multiples avec chômage, coûts de transaction et concurrence monopolistique," EconomiX Working Papers 2006-6, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2006-6
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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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