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- W1784896063 abstract "Imperfect competition has become one of the main ingredients of the so-called ‘New Keynesian economics’. Much recent work has emphasized Keynesian features of imperfectly competitive macroeconomic models, belonging either to the Cournotian tradition, as in Hart (1982), or to one of the monopolistic competition brands, corresponding to the Chamberlinian framework of Dixit and Stiglitz (1977) (Weitzman, 1985; Blanchard and Kiyotaki, 1987), or to Hotelling's spatial model (Weitzman, 1982). A somewhat paradoxical aspect of part of this literature is that it actually appears quite unkeynesian, not so much because Keynes himself paid little attention to imperfect competition, but essentially because some of its results, concerning in particular unemployment or the response to aggregate demand shocks, depend either on union power, or on small adjustment costs (‘menu costs’) and ‘nearly rational’ behaviour of price-setting agents and thus in a sense come back to ‘classical’ explanations, in terms of wage and price rigidities or frictional phenomena." @default.
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- W1784896063 date "1995-10-19" @default.
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- W1784896063 title "Market power, coordination failures and endogenous fluctuations" @default.
- W1784896063 doi "https://doi.org/10.1017/cbo9780511559648.007" @default.
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