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Is competition or collusion in the product market relevant for labour market?

Author

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  • Fabian Berges

    (Groupe de recherche en économie mathématique et quantitative - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique)

  • Stéphane Caprice

    (Groupe de recherche en économie mathématique et quantitative - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique)

Abstract

In non-union models, there is an ambiguous relationship between collusion on the product market and the resulting impact on the labour market. We can derive some conclusions by assuming a dual labour market with qualified and unqualified workers and taking into account the efficiency effect when employing qualified workers. The framework adopted here consists of two firms competing to hire workers on the qualified labour market, and then competing (or colluding) on the product market to sell their production. While qualified workers are heterogeneous in their specialization, firms sell imperfect substitute goods on the product market.

Suggested Citation

  • Fabian Berges & Stéphane Caprice, 2008. "Is competition or collusion in the product market relevant for labour market?," Post-Print hal-02655208, HAL.
    • Handle: RePEc:hal:journl:hal-02655208
    DOI: 10.3917/rel.743.0273
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02655208
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    References listed on IDEAS

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    Cited by:

    1. Pedro Gonzaga & António Brandão & Hélder Vasconcelos, 2013. "Theory of Collusion in the Labor Market," FEP Working Papers 477, Universidade do Porto, Faculdade de Economia do Porto.
    2. Pedro Gonzaga & António Brandão & Helder Vasconcelos, 2014. "Theory of Semi-Collusion in the Labor Market," FEP Working Papers 522, Universidade do Porto, Faculdade de Economia do Porto.

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