We consider a labour market model of oligopsonistic wage competition and show that there is a holdup problem although workers do not have any bargaining power. When a firm invests more, it pays a higher wage in order to attract workers from competitors. Because workers participate in the returns...

A fixprice, non-Walrasian temporary equilibrium that coexists with the Walrasian equilibrium at Walrasian temporary equilibrium prices has been called "unsatisfactory" by F. Hahn (1977). If consumers live and work for two periods, expectations of future unemployment easily (in particular with...