The “Matthew effect'” and market concentration: search complementarities and monopsony power
This paper develops a dynamic general equilibrium model with heterogeneous firms that face search complementarities in the formation of vendor contracts. Search complementarities amplify small differences in productivity among firms. Market concentration fosters monopsony power in the labor market,...
| Main Authors: | , , , |
|---|---|
| Format: | Working paper |
| Language: | English |
| Published: |
Centre for Economic Policy Research
2021
|