infonet-economy

We analyze a macroeconomic model of monopolistic competition in which consumers earn unequal incomes. When preferences are nonhomothetic, the distribution of income affects equilibrium markups and equilibrium product diversity.

In dynamic wage bargaining models it is usually assumed that individual unemployment benefits are a fraction of the average wage level. In most countries, however, unemployment benefits are instead tied to the previous level of individually earned wages. We show how the analysis has to be modified if this fact is taken into account and compare our findings for the wage-setting curve...

Personalwirtschaftliche Zielsetzungen dominieren ohne Frage bei der Einführung von materiellen
Mitarbeiterbeteiligungsmodellen. Neben der Stärkung der Identifikation mit dem
Unternehmen verfolgt die Mehrzahl von Beteiligungsunternehmen die Steigerung der Motivation
der Mitarbeiter, die Steigerung ihrer Arbeitszufriedenheit und die Gewinnung
bzw. Bindung...

In uniform auctions, buyers chosse demand schedules as strategies and the same "market clearing" price for units awarded. Despite the widespread use of these auctions, the extant theory shows that they are susceptible to arbitrarily large underpricing. We make a realistic modification to the theory by letting prices, quantities, and bids be discrete. We show that...

Is general equilibrium theory empirically testable? Our perspective on this question differs fromthe standard, Sonnenschein–Debreu–Mantel (SDM) viewpoint. While the SDM tradition considersaggregate (excess) demand as a function of prices, we suppose that what is observable is the equilibriumprice vector as a function of the fundamentals of the economy.We apply this perspective to...

"Economists long considered money illusion to be largelynirrelevant. Here we show, however, that money illusion has powerfulneffects on equilibrium selection. If we represent payoffs in nominal terms,nchoices converge to the Pareto inefficient equilibrium; however, if we liftnthe veil of money by representing payoffs in real terms, the Pareto efficientnequilibrium is selected....

The authors analyse the New Economy from a scientific point of view. The success and the failure of enterprises of the new economy form a challenge to the modern business management and to the theory of the firm. This conference transcript answers the question in which way well-established concepts of the theory of the firm should be modified or new approaches should be created, in...