Over the past thirty years, the income gap between capital and labour has widened, a shift accompanied by an increase in dominant firms’ market power. To understand the underlying causes, our study integrates imperfect competition in both product and labour markets, revealing how different...

This paper studies the role of quality competition in endogenous growth and institutional factors which can affect growth through affecting quality competition. The Ramp;D-based growth literature as it stands attributes the incentives for innovations to monopolist market structure, and regards...

Some recent empirical findings suggest that there are intrinsic links between the statistical regularities regarding cohort survival patterns, the persistence of firm turnover, and shakeout during an industry life-cycle. This paper presents a theoretical model which explains these regularities...

In imperfectly competitive markets, a producer-employer firm can be considered monopolist-monopsonist, facing downward sloping residual demand for product and upward sloping residual supply for labour. Firms can thereby exercise both product price markup and wage markdown powers. To study market...