Market power, coordination failures and endogenous fluctuations

d'Aspremont-Lynden, Claude; Ferreira, Rodolphe Dos Santos; Gérard‐Varet, Louis‐André

doi:10.1017/cbo9780511559648.007

Cited by 17 publications

(14 citation statements)

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“…11 We assume that at the beginning of period t producers, given r t , rent capital on the economy-wide capital market. After this wages and employment are determined through a bargain between unions and 8 Workers cannot move between firms or unions.…”

Section: Firmsmentioning

confidence: 99%

“…See also Cazzavillan (2001) where a similar assumption is considered. 11 Each small individual producer (m big) takes kt as given when solving his optimizing problem.…”

Section: Firmsmentioning

confidence: 99%

“…14 Note that, given (11), the derivative of αk υ t Af (xt) with respect to kt must be equal to zero. Substituting now (14) in (13) we can see that profits are zero.…”

Section: Wage Employment and Capital Decisionsmentioning

confidence: 99%

“…When the firm has all the power in the bargaining process (α = 1) we obtain the competitive outcome: the rental cost of capital is identical to the marginal productivity of capital (see (14)) and the wage equals both the marginal productivity of labor and the reservation wage (see (11) and (12)). …”

Section: Wage Employment and Capital Decisionsmentioning

confidence: 99%

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Endogenous fluctuations in unionized economies with productive externalities

2005

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We discuss the effects of unions on steady-state multiplicity and welfare, and on the existence of endogenous fluctuations. We consider an OG economy with productive capital externalities and we focus on underemployment equilibria. We find that for wide regions in the parameter space, including an arbitrarily small degree of externalities and a Cobb-Douglas technology, unions increase steady state employment and welfare, and local indeterminacy (sunspots) emerges. Moreover with a CES technology multiplicity of steady states is only possible in the presence of unions. Our results also show that the role of unions in shaping local dynamics and bifurcations depends on technology (externalities and factor’s substitutability). Copyright Springer-Verlag Berlin/Heidelberg 2005Unions, Local indeterminacy and bifurcations, Steady-state welfare, Capital externalities.,

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Section: Firmsmentioning

confidence: 99%

“…See also Cazzavillan (2001) where a similar assumption is considered. 11 Each small individual producer (m big) takes kt as given when solving his optimizing problem.…”

Section: Firmsmentioning

confidence: 99%

“…14 Note that, given (11), the derivative of αk υ t Af (xt) with respect to kt must be equal to zero. Substituting now (14) in (13) we can see that profits are zero.…”

Section: Wage Employment and Capital Decisionsmentioning

confidence: 99%

Section: Wage Employment and Capital Decisionsmentioning

confidence: 99%

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Endogenous fluctuations in unionized economies with productive externalities

2005

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“…Chatterjee et al (1993), D'Aspremont et al (1995), dos Santos Ferreira andLloyd-Braga (2005), or Kaas and Madden (2005)), or discrete-time Real Business Cycle (RBC) models (e.g. dos Santos Ferreira and Dufour (2006) , Portier (1995), Costa (2001) and Costa (2006)).…”

Section: Introductionmentioning

confidence: 99%

Non-Smooth Dynamics and Multiple Equilibria in a Cournot-Ramsey Model with Endogenous Markups

2008

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Aberconway Building, Column Drive; Cardiff, CF10 3EU; United Kingdom. Terms of use: Documents in September 2008 AbstractWe develop a simple Ramsey model with numerous Cournotian industries where entry generates an endogenous markup. The model produces two different regimes: a monopoly and an oligopoly one. We provide a rigorous study of non-smooth dynamics and we also analyse the global dynamics of the model, demonstrating the model exhibits robust heteroclinic orbits, either of the smooth or the non-smooth type. Similar economies may be in any of these regimes and they may change regime along its convergence path. Fixed * Corresponding author. Financial support by FCT is gratefully acknowledged. This article is part of project POCTI/ECO/46580/2002 which is co-funded by ERDF. We are grateful to

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Competition within and Between Groups of Firms

d’Aspremont

Ferreira

2021

The Economics of Competition, Collusion and in-Between

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Market power, coordination failures and endogenous fluctuations

Cited by 17 publications

References 0 publications

Endogenous fluctuations in unionized economies with productive externalities

Endogenous fluctuations in unionized economies with productive externalities

Non-Smooth Dynamics and Multiple Equilibria in a Cournot-Ramsey Model with Endogenous Markups

Competition within and Between Groups of Firms

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