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Journal Articles Economics Bulletin Year : 2015

Vertical differentiation and labor market: the differentiation principle revisited

Abstract

The labor market is introduced into the standard vertical differentiation model, linking increasingly the quality of the product and the effort necessary for workers to produce it. Surprisingly, when two firms compete on the product market but are monopolies on the labor market, at equilibrium they choose not to differentiate their products, which is different from the result obtained with standard vertical differentiation models.
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Dates and versions

hal-01457404 , version 1 (06-02-2017)

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  • HAL Id : hal-01457404 , version 1

Cite

Amal Hili, Rim Lahmandi-Ayed, Hejer Lasram. Vertical differentiation and labor market: the differentiation principle revisited. Economics Bulletin, 2015, 35 (1), pp.633--640. ⟨hal-01457404⟩
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