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• W2091806124 abstract "Although seldom modeled outside the monopolistic competition framework, market incompleteness and imperfect competition are central to the new growth theories. We propose here a strategic model of imperfect competition with endogenous growth and endogenous market structure where we focus on labor market issues. For growth to be possible, we assume increasing returns at the firm level. Due to heterogeneity on the labor market, the market structure is not degenerate. Then, because of increasing returns, short-run efficiency is maximized under monopoly and free entry implies too many firms in the market. However, in the long run competition can generate growth through a distribution effect, whereas a monopoly leads to a zero-growth steady state. Thus, there is a trade-off between static and dynamic efficiency. This trade-off implies the existence of a growth-maximizing degree of competition in our economy." @default.
• W2091806124 created "2016-06-24" @default.
• W2091806124 creator A5054737488 @default.
• W2091806124 date "2000-02-01" @default.
• W2091806124 modified "2023-09-27" @default.
• W2091806124 title "Growth and imperfect competition on factor markets: Increasing returns and distribution" @default.
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• W2091806124 doi "https://doi.org/10.1016/s0014-2921(98)00071-3" @default.
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