IDEAS home Printed from https://ideas.repec.org/a/beo/journl/v52y2007i173p7-35.html
   My bibliography  Save this article

Monopsony In The Labor Market: Profit Vs. Wage Maximization

Author

Listed:
  • Đorđe Šuvaković Olgin
  • Goran Radosavljević

Abstract

This paper compares the efficiency of profit- and wage-maximizing (PM and WM) monopsony in the labor market. We show that, both locally and globally, a PM monopsony may well be dominated by its WM twin, where the local and global dominance are defined with respect to a single (inverse) labor supply function and a single family of such functions. This family is always divided in the two disjoint (sub)families of the PM and WM dominance. We also analyze some major factors that explain the size of these (sub)families.

Suggested Citation

  • Đorđe Šuvaković Olgin & Goran Radosavljević, 2007. "Monopsony In The Labor Market: Profit Vs. Wage Maximization," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 52(173), pages 7-35, April - J.
    • Handle: RePEc:beo:journl:v:52:y:2007:i:173:p:7-35
    as

    Download full text from publisher

    File URL: http://www.ekof.bg.ac.rs/wp-content/uploads/2014/06/173-1.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Monopsony; Labor Market; Profit Maximization; Wage Maximization;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • D60 - Microeconomics - - Welfare Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:beo:journl:v:52:y:2007:i:173:p:7-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Goran Petrić (email available below). General contact details of provider: https://edirc.repec.org/data/efbeoyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.