ISSN:
1434-4750
Keywords:
JEL classification: D92, L13, L20, O31 Key words:Auction, process innovation, persistence of monopoly, efficiency effect, labour-managed firms
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract. The issue of the persistence of monopoly when at least one labour-managed firm takes part in an auction for a cost-reducing innovation is tackled in this paper. It is shown that (i) when the incumbent is a profit-maximizing firm while the entrant is a labour-managed firm, monopoly persists; (ii) when both firms are labour-managed, monopoly persists only if the technology initially employed by the incumbent is highly inefficient as compared to the new one; and, finally, (iii) when the incumbent is labour-managed while the outsider is a profit seeking agent, then entry always occurs and monopoly changes hands.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/s100580050021
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