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...

The paper shows that, with any rationing mechanism between the efficient and proportional extremes, the Kreps-Scheinkman two-stage quantity-price game reduces to the Cournot model if demand is uniformly elastic and if all costs are sunk at the first stage, thus providing positive results to set...

This paper presents a theoretical model to show how distributional concerns can engender social conflict. We have a two‐period model that highlights the crucial role of future inequality. Equality of assets and income in the current period does not stop conflict from arising the anticipated...