IDEAS home Printed from https://ideas.repec.org/h/spr/lnechp/978-3-642-10409-1_4.html
   My bibliography  Save this book chapter

Long-Run Spatial Monopsony

In: Monopsonistic Labour Markets and the Gender Pay Gap

Author

Listed:
  • Boris Hirsch

    (Friedrich-Alexander-Universität Erlangen-Nürnberg)

Abstract

In the following, we will deal with long-run spatial monopsony. As stated in assumption (A7), we consider the model’s outcomes – discussed for fixed market areas in Chapter 3 – when free entry of firms drives profits to zero. In other words, we solve the model for the zero-profit equilibrium. Hence, firms’ market radius becomes an endogenous outcome of the model. Nevertheless, we already have the central building blocks of the long-run model at hand: The results gained from the analysis carried out in Chapter 3 still determine firms’ optimal wage-setting behaviour within a market area of a given radius. To close the model, we just have to impose a zero-profit condition. Together, optimal (short-run) wage setting and the zero-profit condition then determine the long-run equilibrium wage–market radius pair.

Suggested Citation

  • Boris Hirsch, 2010. "Long-Run Spatial Monopsony," Lecture Notes in Economics and Mathematical Systems, in: Monopsonistic Labour Markets and the Gender Pay Gap, chapter 0, pages 49-94, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-10409-1_4
    DOI: 10.1007/978-3-642-10409-1_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:lnechp:978-3-642-10409-1_4. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.