Monopoly and Economic Efficiency: Perspective from an Efficiency Wage Model

Monopoly, economic efficiency and unemployment

a r t i c l e i n f o The objective of this paper is to analyze the efficiency consequences of monopoly from the perspective of an efficiency-wage model of unemployment based on Shapiro and Stiglitz (1984). An important feature of our model is that a firm can raise the probability that a shirking worker is detected by increasing its effort or investment in the monitoring of workers. Using this ...

Test Of Efficiency- Wage Model For Iran's Economy

Public Policy, Employment and Welfare in an Efficiency Wage Model

This paper develops an efficiency wage model to highlight public policy for relieving unemployment in general equilibrium. This equilibrium entails unemployment because of either friction in the labor market or efficiency wages. For the purposes of relief, we present unemployment benefits and public employment programs, and we estimate labor demand and supply. Wage subsidies are also considered...

Economic Efficiency of Decentralized Unit Commitment from a Generator's Perspective

In this chapter, we study the optimal commitment of generation units in a decentralized market from the perspective of an individual market participant. We start by comparing the theoretic economic efficiencies of centralized and decentralized unit commitment (UC). We prove that under certain circumstances and in contrast to current teaching, centralized UC can lead to overall higher social wel...

Wage Differentials in Experimental Efficiency Wage Markets

In recent years, many econometric studies have confirmed the existence of inter-industry wage differentials. Even after controlling for a large number of joband worker related characteristics, and demographic variables, large and statistically significant industry wage differences remain. Moreover, these differences exist for union as well as for non-union workers and seem to be remarkably simi...