Tuesday, July 14, 2020
On Equilibrium in Monopolistic Competition with Endogenous Labor
On Equilibrium in Monopolistic Competition with Endogenous Labor
Abstract
We consider a model of monopolistic competition with several heterogeneous sectors and endogenous labor supply. For low (high) values of the labor supply elasticity, we show that there is always a unique equilibrium. For medium values of the labor supply elasticity, the set of equilibria (if non-empty) can comprise of several equilibria, with the number of equilibria bounded by the number of sectors.
https://lawprofessors.typepad.com/antitrustprof_blog/2020/07/on-equilibrium-in-monopolistic-competition-with-endogenous-labor.html