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The Efficiency of Search under Competition and Monopsony

James Albrecht; Boyan Jovanovic

Journal of Political Economy 1986

This paper compares monopsonistic and competitive search equilibria. While the competitive equilibrium is efficient, the monopsonistic equilibrium is not: there is too much search, and the employment rate is too low.

DOI
10.1086/261431
Volume
94 (6)
Pages
1246-1257
Language
en
Export
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