This pape r combines two ideas in oligopoly theory: models of strategic investment and T. Bresnehan's_(1981) concept of consistency of conjectures. Firms precommit capita l stocks and hencedetermine their short-run cost function. The degree of compet ition in the product market is made...

This paper provides a simple example of a multisector unionized economy with equilibrium unemployment and for which monetary policy has a standard Keynesian multiplier. In equilibrium, unions choose a wage that is a fixed markup over the nominal unemployment benefit level, which can lead to...