Olgin, Đorđe Šuvaković; Radosavljević, Goran - In: Economic Annals 52 (2007) 173, pp. 7-35
This paper compares the efficiency of profit- and wage-maximizing (PM and WM) monopsony in the labor market. We show that, both locally and globally, a PM monopsony may well be dominated by its WM twin, where the local and global dominance are defined with respect to a single (inverse) labor...