This paper demonstrates that the Bertrand paradox does not hold if cost functions are strictly convex. Instead, multiple equilibria exist which can be Pareto-ranked. The paper shows that the Pareto-dominant equilibrium may imply profus higher than in Cournot competition or may even sustain...

In oligopsonistic labour markets, firms have some market power, and a wedge is created between wages and marginal product. When oligopsonistic firms' production technology requires generally trained workers, firms may therefore receive part of the returns to general training and be willing to...

The spatial dimension of most agricultural raw product markets (e.g., milk) and the high concentration of food processors facilitate the exercise of market power towards farmers. In the milk sector, processors that are investor-owned firms (IOFs) compete alongside processing cooperatives (COOPs)...

This article appeals to heterogeneity in workers' non-wage preferences to model taste-based discrimination. Firms hire both types of workers and pay lower wages to minority workers, whatever their taste for discrimination. A single prejudiced firm in the market produces a substantial wage gap in...