Giacomo Corneo (1995). National wage bargaining in an
internationally integrated product market, European Journal of Political Economy, vol.11, page 503-520
Perfect competition requires firms be price takers, products be homogeneous, and there be free entry and exit in the market. A competitive firm maximizes profits by producing at the quantity where marginal revenue equals marginal cost. In long-run equilibrium, competitive firms earn zero economic profits as entry and exit of firms causes the market supply curve to shift until it is tangent to the average cost curve. Consumer and producer surplus are measures of welfare in a competitive market. Import quotas and tariffs reduce welfare by creating deadweight loss. Taxes can impact buyers and sellers depending on price elasticities of supply and demand. Anti-trust laws aim to promote competition by preventing collusion and artificial restrictions on output.
The document provides a mark scheme for the Edexcel GCE Economics exam from January 2006. It outlines the answers and number of marks awarded for multiple choice and longer questions in Section A and B. Section A covers topics like mergers, oligopoly, costs and revenue. Section B involves questions on the low-cost airline industry, regulation of Royal Mail, and assessing contestability. The mark scheme emphasizes definitions, calculations, diagrams, and evaluation in awarding marks for responses.
This document contains the mark scheme for Edexcel GCE Economics (6354) from Summer 2005. It provides the answers and marking schemes for 10 multiple choice questions and 1 essay question with 3 parts on the topics of:
1) Perfect competition and price discrimination
2) Conditions for profitable price discrimination and why it may be more common in airlines than pharmaceuticals
3) Impacts of the internet on market contestability
The mark scheme outlines the key points examiners are looking for in responses and the number of marks awarded for correct or partially correct answers. It serves as guidance to ensure consistent evaluation of answers addressing the given economic concepts.
This document provides the mark scheme for the 2008 summer GCE Economics exam. It outlines the answers and marks awarded for each multiple choice and long answer question. For question 1, the answer is C and up to 3 marks are awarded for explaining the merger's impact on market share and referring to competition authorities. For question 2, the answer is C and up to 3 marks are awarded for defining marginal concepts and applying them to a diagram.
The document provides general marking guidance for examiners evaluating exam responses. It outlines principles such as treating all candidates equally, marking what is shown rather than penalizing omissions, and awarding all marks that are deserved according to the mark scheme. It also provides examples of how to mark specific types of questions, such as multiple choice questions and data questions, including awarding levels of response. The document aims to promote consistency across examiners in applying the mark scheme.
This document discusses profit maximization and competitive supply. It begins by defining perfectly competitive markets and their key characteristics of price taking, product homogeneity, and free entry/exit. It then explains that firms seek to maximize profits in the long run. Using marginal revenue and marginal cost, it shows that firms maximize profits by producing at the quantity where marginal revenue equals marginal cost. In the short run, individual firms and industries will increase or decrease output in response to price changes until marginal cost again equals price at the new profit-maximizing quantity.
1. The document provides advice on drawing diagrams for economics exams, including leaving space between text and diagrams and clearly labeling axes.
2. It lists 15 diagrams that could be included in the exam, covering topics like diminishing returns, costs in the short run, and game theory models of oligopoly.
3. Students are advised to draw diagrams to the appropriate technical level and not use simple supply and demand analysis when more complex curves are required.
Perfect competition requires firms be price takers, products be homogeneous, and there be free entry and exit in the market. A competitive firm maximizes profits by producing at the quantity where marginal revenue equals marginal cost. In long-run equilibrium, competitive firms earn zero economic profits as entry and exit of firms causes the market supply curve to shift until it is tangent to the average cost curve. Consumer and producer surplus are measures of welfare in a competitive market. Import quotas and tariffs reduce welfare by creating deadweight loss. Taxes can impact buyers and sellers depending on price elasticities of supply and demand. Anti-trust laws aim to promote competition by preventing collusion and artificial restrictions on output.
The document provides a mark scheme for the Edexcel GCE Economics exam from January 2006. It outlines the answers and number of marks awarded for multiple choice and longer questions in Section A and B. Section A covers topics like mergers, oligopoly, costs and revenue. Section B involves questions on the low-cost airline industry, regulation of Royal Mail, and assessing contestability. The mark scheme emphasizes definitions, calculations, diagrams, and evaluation in awarding marks for responses.
This document contains the mark scheme for Edexcel GCE Economics (6354) from Summer 2005. It provides the answers and marking schemes for 10 multiple choice questions and 1 essay question with 3 parts on the topics of:
1) Perfect competition and price discrimination
2) Conditions for profitable price discrimination and why it may be more common in airlines than pharmaceuticals
3) Impacts of the internet on market contestability
The mark scheme outlines the key points examiners are looking for in responses and the number of marks awarded for correct or partially correct answers. It serves as guidance to ensure consistent evaluation of answers addressing the given economic concepts.
This document provides the mark scheme for the 2008 summer GCE Economics exam. It outlines the answers and marks awarded for each multiple choice and long answer question. For question 1, the answer is C and up to 3 marks are awarded for explaining the merger's impact on market share and referring to competition authorities. For question 2, the answer is C and up to 3 marks are awarded for defining marginal concepts and applying them to a diagram.
The document provides general marking guidance for examiners evaluating exam responses. It outlines principles such as treating all candidates equally, marking what is shown rather than penalizing omissions, and awarding all marks that are deserved according to the mark scheme. It also provides examples of how to mark specific types of questions, such as multiple choice questions and data questions, including awarding levels of response. The document aims to promote consistency across examiners in applying the mark scheme.
This document discusses profit maximization and competitive supply. It begins by defining perfectly competitive markets and their key characteristics of price taking, product homogeneity, and free entry/exit. It then explains that firms seek to maximize profits in the long run. Using marginal revenue and marginal cost, it shows that firms maximize profits by producing at the quantity where marginal revenue equals marginal cost. In the short run, individual firms and industries will increase or decrease output in response to price changes until marginal cost again equals price at the new profit-maximizing quantity.
1. The document provides advice on drawing diagrams for economics exams, including leaving space between text and diagrams and clearly labeling axes.
2. It lists 15 diagrams that could be included in the exam, covering topics like diminishing returns, costs in the short run, and game theory models of oligopoly.
3. Students are advised to draw diagrams to the appropriate technical level and not use simple supply and demand analysis when more complex curves are required.
Managerial Economics (Chapter 8 - Theory and Estimation of Cost)Nurul Shareena Misran
This document discusses the theory and estimation of cost in the short run for firms. It defines total, fixed, variable, average, and marginal costs. Total cost is the sum of fixed and variable costs. In the short run, as output increases, average fixed cost decreases while average variable and total costs initially decrease due to economies of scale but eventually increase due to diminishing returns. This results in U-shaped average total cost curves. Marginal cost intersects average costs at their minimum points. Technology improvements and input price changes can shift these cost curves. Cost functions are often modeled using cubic, quadratic, or linear equations.
The break even point for a product is when total revenue equals total costs, where no profit or loss exists. Break even analysis examines the relationship between quantity, total costs, total revenue, and profits. It determines the volume needed to cover fixed costs and the sensitivity of profits to changes in volume. The break even point is important because above this level, revenues exceed costs and the product becomes profitable.
1) In the short run, firms have both fixed and variable costs. Fixed costs do not depend on output while variable costs do. Marginal cost is the change in total cost from producing one more unit of output.
2) As a firm increases output in the short run, marginal costs will initially decrease but eventually rise as it approaches its fixed capacity. Average costs also fall at first but then rise as marginal costs increase.
3) A profit-maximizing firm will produce the quantity where marginal revenue equals marginal cost, which is also where average total cost is minimized in perfect competition. The marginal cost curve represents the firm's short-run supply curve.
- In the short run, firms have fixed costs that do not depend on output level. They also have variable costs that vary with output. Total costs are the sum of fixed and variable costs.
- Marginal cost is the change in total cost from producing one additional unit. It reflects changes in variable costs. Marginal cost typically rises as output increases in the short run due to diminishing returns.
- A profit-maximizing firm will produce the quantity where marginal revenue equals marginal cost. In perfect competition, this occurs where price equals marginal cost.
The document describes how to create a break-even analysis graph showing fixed costs, variable costs, total costs and total revenue, and how to identify the break-even point where total revenue equals total costs. It also defines margin of safety as the difference between actual sales and break-even sales, representing the strength of the business in knowing profits or losses relative to the break-even point.
This document discusses methods for estimating cost functions and determining the optimal scale of operations. It covers:
1. Short-run and long-run cost functions which can be estimated statistically using regression analysis and engineering cost techniques.
2. Factors that influence costs such as output mix, input prices, and technology. Controling for these is important to isolate the cost-output relationship.
3. Break-even analysis and contribution margin which are used to determine output levels required to cover fixed costs and earn profits. The relevance of different costs depends on whether alternatives are avoidable.
4. Operating leverage and business risk which depend on a firm's fixed costs, sales variability, and degree of operating leverage.
INTRODUCTION
A breakeven analysis is used to determine how much sales volume your business needs to start making a profit.
The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan.
In economics & business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even".
Total cost = Total revenue = B.E.P.
- Cost refers to the sacrifice incurred when resources are exchanged or transformed. Accounting focuses on historical costs while economics considers opportunity costs for decision making.
- Short-run cost functions include fixed, variable, and marginal costs. Long-run functions consider economies and diseconomies of scale.
- There are three key contrasts between accounting and economic costs: depreciation measurement, inventory valuation, and treatment of sunk costs. Learning curves and scale economies influence costs at the product, plant, and firm levels in the long run.
The document discusses costs and output decisions for firms in the long run and short run. It provides an example of a car wash earning positive profits in the short run by setting output where marginal revenue equals marginal cost. In the long run, firms will enter industries with positive profits and exit industries with losses until prices equal minimum long-run average costs and profits are driven to zero.
This document discusses different types of costs including fixed costs, variable costs, average costs, and marginal costs. It provides examples of each type of cost and explains how they relate to total cost, average cost, and profit analysis. The key points made include:
- Fixed costs do not depend on output while variable costs do depend on output. Total cost is the sum of fixed and variable costs.
- Average cost is total cost divided by output and depends on the ratio of fixed costs to output. Marginal cost is the change in total cost from a one unit change in output and depends only on variable costs.
- The relationship between average cost, marginal cost, and output determines if a company experiences economies of
1. The document discusses concepts of revenue including total revenue, average revenue, and marginal revenue under conditions of perfect competition and imperfect competition.
2. It explains that under perfect competition, price equals average revenue which also equals marginal revenue, whereas under imperfect competition, average revenue is equal to price but marginal revenue declines as output increases.
3. The key conditions for a firm to maximize its profit are for marginal revenue to equal marginal cost and for the marginal cost curve to be rising. Profit is maximized at the level of output where these two conditions are met.
In the long run, all inputs including capital and labor can be varied as a firm changes its scale of production. As scale increases, a firm may experience economies of scale where average total cost decreases, constant returns to scale where average total cost remains the same, or diseconomies of scale where average total cost increases. The long-run average cost curve depicts the lowest attainable average total cost for a given output level as a firm adjusts its size.
This document discusses short-run costs and output decisions for firms. It defines various cost concepts like fixed costs, variable costs, total costs, average costs and marginal costs. It explains that in the short-run, firms face fixed costs that cannot be changed. It also discusses how firms determine the profit-maximizing level of output by producing at the point where marginal revenue equals marginal cost. The marginal cost curve represents a firm's short-run supply curve in perfect competition.
The document provides an overview of marginal costing techniques. It defines key terms like marginal cost, fixed cost, and variable cost. It explains the differences between absorption costing and marginal costing. Absorption costing includes both fixed and variable costs when calculating product costs, while marginal costing only includes variable costs and separates fixed costs. This treatment of costs helps marginal costing better aid in decision making by distinguishing relevant variable costs from irrelevant fixed costs.
The document discusses the concepts of total revenue (TR), average revenue (AR), and marginal revenue (MR) under perfect competition and monopoly market structures. It provides formulas for TR, AR, and MR and illustrates them with a table showing quantity, price, TR, AR, and MR at different output levels. Under perfect competition, TR, AR and MR are constant as output increases. The relationships between TR, AR and MR curves are also explained.
Peter Warken - Effective Pricing of Cliquet Options - Masters thesis 122015Peter Warken
This thesis examines pricing methods for cliquet options, a type of path-dependent option linked to equity indices. The author develops a semi-closed form pricing formula for cliquet options in a Black-Scholes market and compares it to Monte Carlo simulation. The impact of stochastic volatility and interest rates on pricing is also examined. Numerical experiments illustrate how market parameters affect cliquet option prices. The pricing approach is also applied to similar products like sum cap contracts.
1. The document provides advice on drawing diagrams for exam questions, including making diagrams about 1/3 of an A4 page, keeping text separate from diagrams, clearly labeling axes and curves, and drawing diagrams at the appropriate technical level.
2. It then lists 15 common diagrams that may be included, such as the law of diminishing returns, fixed and variable costs, revenue curves, and imperfect competition models.
Competitive effects of trade: Theory and measurement ademuADEMU_Project
Trade induces many different types of reallocations across firms and products. These reallocations include selection effects (which products are sold where; which firms survive, and which ones export) as well as competition effects (responses in markups that generate changes in the relative sales of products in a given destination).
The document discusses the concept of perfect competition in economics. It provides the key characteristics that define a perfectly competitive market including that there are many small firms, no barriers to entry or exit, identical products, and complete information. Firms are price takers and seek to maximize profits by producing where marginal cost equals marginal revenue. In the long run, perfect competition leads to zero economic profits as new firms enter if profits are positive and firms exit if losses occur.
Este templo neoclásico ubicado en la Plaza Constitución de Huancayo fue construido entre 1799-1831 y elevado a rango de catedral en 1955, albergando pinturas de la Escuela Cusqueña. Fue construido en un terreno donado por vecinos y se ha convertido en un importante espacio público y religioso de la ciudad.
Get Going With Green: Executive Summary (China)Ogilvy
A team of strategists and ethnographers from Ogilvy & Mather's sustainability practice Ogilvy Earth and consumer insights team Discovery studied 24 families in Tianjin, Shanghai and Wuxi, spending time in people's homes, observing their daily routines and recording consumption and disposal behavior. This was followed by a nationwide quantitative study amongst 1,300 respondents to both understand and measure the sustainability opportunity.
In the United States, a defendant has an absolute right to appeal a guilty verdict. In addition, you may also be entitled to appeal the sentence you received. Learn more about appealing a criminal conviction in California in this presentation.
Managerial Economics (Chapter 8 - Theory and Estimation of Cost)Nurul Shareena Misran
This document discusses the theory and estimation of cost in the short run for firms. It defines total, fixed, variable, average, and marginal costs. Total cost is the sum of fixed and variable costs. In the short run, as output increases, average fixed cost decreases while average variable and total costs initially decrease due to economies of scale but eventually increase due to diminishing returns. This results in U-shaped average total cost curves. Marginal cost intersects average costs at their minimum points. Technology improvements and input price changes can shift these cost curves. Cost functions are often modeled using cubic, quadratic, or linear equations.
The break even point for a product is when total revenue equals total costs, where no profit or loss exists. Break even analysis examines the relationship between quantity, total costs, total revenue, and profits. It determines the volume needed to cover fixed costs and the sensitivity of profits to changes in volume. The break even point is important because above this level, revenues exceed costs and the product becomes profitable.
1) In the short run, firms have both fixed and variable costs. Fixed costs do not depend on output while variable costs do. Marginal cost is the change in total cost from producing one more unit of output.
2) As a firm increases output in the short run, marginal costs will initially decrease but eventually rise as it approaches its fixed capacity. Average costs also fall at first but then rise as marginal costs increase.
3) A profit-maximizing firm will produce the quantity where marginal revenue equals marginal cost, which is also where average total cost is minimized in perfect competition. The marginal cost curve represents the firm's short-run supply curve.
- In the short run, firms have fixed costs that do not depend on output level. They also have variable costs that vary with output. Total costs are the sum of fixed and variable costs.
- Marginal cost is the change in total cost from producing one additional unit. It reflects changes in variable costs. Marginal cost typically rises as output increases in the short run due to diminishing returns.
- A profit-maximizing firm will produce the quantity where marginal revenue equals marginal cost. In perfect competition, this occurs where price equals marginal cost.
The document describes how to create a break-even analysis graph showing fixed costs, variable costs, total costs and total revenue, and how to identify the break-even point where total revenue equals total costs. It also defines margin of safety as the difference between actual sales and break-even sales, representing the strength of the business in knowing profits or losses relative to the break-even point.
This document discusses methods for estimating cost functions and determining the optimal scale of operations. It covers:
1. Short-run and long-run cost functions which can be estimated statistically using regression analysis and engineering cost techniques.
2. Factors that influence costs such as output mix, input prices, and technology. Controling for these is important to isolate the cost-output relationship.
3. Break-even analysis and contribution margin which are used to determine output levels required to cover fixed costs and earn profits. The relevance of different costs depends on whether alternatives are avoidable.
4. Operating leverage and business risk which depend on a firm's fixed costs, sales variability, and degree of operating leverage.
INTRODUCTION
A breakeven analysis is used to determine how much sales volume your business needs to start making a profit.
The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan.
In economics & business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even".
Total cost = Total revenue = B.E.P.
- Cost refers to the sacrifice incurred when resources are exchanged or transformed. Accounting focuses on historical costs while economics considers opportunity costs for decision making.
- Short-run cost functions include fixed, variable, and marginal costs. Long-run functions consider economies and diseconomies of scale.
- There are three key contrasts between accounting and economic costs: depreciation measurement, inventory valuation, and treatment of sunk costs. Learning curves and scale economies influence costs at the product, plant, and firm levels in the long run.
The document discusses costs and output decisions for firms in the long run and short run. It provides an example of a car wash earning positive profits in the short run by setting output where marginal revenue equals marginal cost. In the long run, firms will enter industries with positive profits and exit industries with losses until prices equal minimum long-run average costs and profits are driven to zero.
This document discusses different types of costs including fixed costs, variable costs, average costs, and marginal costs. It provides examples of each type of cost and explains how they relate to total cost, average cost, and profit analysis. The key points made include:
- Fixed costs do not depend on output while variable costs do depend on output. Total cost is the sum of fixed and variable costs.
- Average cost is total cost divided by output and depends on the ratio of fixed costs to output. Marginal cost is the change in total cost from a one unit change in output and depends only on variable costs.
- The relationship between average cost, marginal cost, and output determines if a company experiences economies of
1. The document discusses concepts of revenue including total revenue, average revenue, and marginal revenue under conditions of perfect competition and imperfect competition.
2. It explains that under perfect competition, price equals average revenue which also equals marginal revenue, whereas under imperfect competition, average revenue is equal to price but marginal revenue declines as output increases.
3. The key conditions for a firm to maximize its profit are for marginal revenue to equal marginal cost and for the marginal cost curve to be rising. Profit is maximized at the level of output where these two conditions are met.
In the long run, all inputs including capital and labor can be varied as a firm changes its scale of production. As scale increases, a firm may experience economies of scale where average total cost decreases, constant returns to scale where average total cost remains the same, or diseconomies of scale where average total cost increases. The long-run average cost curve depicts the lowest attainable average total cost for a given output level as a firm adjusts its size.
This document discusses short-run costs and output decisions for firms. It defines various cost concepts like fixed costs, variable costs, total costs, average costs and marginal costs. It explains that in the short-run, firms face fixed costs that cannot be changed. It also discusses how firms determine the profit-maximizing level of output by producing at the point where marginal revenue equals marginal cost. The marginal cost curve represents a firm's short-run supply curve in perfect competition.
The document provides an overview of marginal costing techniques. It defines key terms like marginal cost, fixed cost, and variable cost. It explains the differences between absorption costing and marginal costing. Absorption costing includes both fixed and variable costs when calculating product costs, while marginal costing only includes variable costs and separates fixed costs. This treatment of costs helps marginal costing better aid in decision making by distinguishing relevant variable costs from irrelevant fixed costs.
The document discusses the concepts of total revenue (TR), average revenue (AR), and marginal revenue (MR) under perfect competition and monopoly market structures. It provides formulas for TR, AR, and MR and illustrates them with a table showing quantity, price, TR, AR, and MR at different output levels. Under perfect competition, TR, AR and MR are constant as output increases. The relationships between TR, AR and MR curves are also explained.
Peter Warken - Effective Pricing of Cliquet Options - Masters thesis 122015Peter Warken
This thesis examines pricing methods for cliquet options, a type of path-dependent option linked to equity indices. The author develops a semi-closed form pricing formula for cliquet options in a Black-Scholes market and compares it to Monte Carlo simulation. The impact of stochastic volatility and interest rates on pricing is also examined. Numerical experiments illustrate how market parameters affect cliquet option prices. The pricing approach is also applied to similar products like sum cap contracts.
1. The document provides advice on drawing diagrams for exam questions, including making diagrams about 1/3 of an A4 page, keeping text separate from diagrams, clearly labeling axes and curves, and drawing diagrams at the appropriate technical level.
2. It then lists 15 common diagrams that may be included, such as the law of diminishing returns, fixed and variable costs, revenue curves, and imperfect competition models.
Competitive effects of trade: Theory and measurement ademuADEMU_Project
Trade induces many different types of reallocations across firms and products. These reallocations include selection effects (which products are sold where; which firms survive, and which ones export) as well as competition effects (responses in markups that generate changes in the relative sales of products in a given destination).
The document discusses the concept of perfect competition in economics. It provides the key characteristics that define a perfectly competitive market including that there are many small firms, no barriers to entry or exit, identical products, and complete information. Firms are price takers and seek to maximize profits by producing where marginal cost equals marginal revenue. In the long run, perfect competition leads to zero economic profits as new firms enter if profits are positive and firms exit if losses occur.
Este templo neoclásico ubicado en la Plaza Constitución de Huancayo fue construido entre 1799-1831 y elevado a rango de catedral en 1955, albergando pinturas de la Escuela Cusqueña. Fue construido en un terreno donado por vecinos y se ha convertido en un importante espacio público y religioso de la ciudad.
Get Going With Green: Executive Summary (China)Ogilvy
A team of strategists and ethnographers from Ogilvy & Mather's sustainability practice Ogilvy Earth and consumer insights team Discovery studied 24 families in Tianjin, Shanghai and Wuxi, spending time in people's homes, observing their daily routines and recording consumption and disposal behavior. This was followed by a nationwide quantitative study amongst 1,300 respondents to both understand and measure the sustainability opportunity.
In the United States, a defendant has an absolute right to appeal a guilty verdict. In addition, you may also be entitled to appeal the sentence you received. Learn more about appealing a criminal conviction in California in this presentation.
This document provides an overview of a talk on fundamentals of web application security and security testing. The talk will last about an hour and cover basic topics like HTTP, host headers, cookies, sessions, cross-site scripting (XSS), and SQL injection. It will also discuss tools for security testing and provide examples of how to test for and exploit vulnerabilities. The talk is aimed at beginners and assumes some familiarity with HTML and the internet. A follow-up workshop on Sunday will allow for deeper practical discussion driven by participants.
cuestionario de computacion 6 de turismojusue21993
Este documento proporciona definiciones y explicaciones sobre varias herramientas y tecnologías de información y comunicación (TIC). Define TIC, herramientas colaborativas, herramientas en línea como Google Docs y SlideShare, así como blogs, suscripciones y herramientas de oficina.
An album of photographs documents a trial where Mrs. Anabel Montes testified as an eyewitness, with Rob being accused of a crime and found guilty by the jury, leading to him being sentenced to time behind bars.
This document provides descriptions of several selective journeys offered by Indus Experiences in Sri Lanka. The journeys range from half to full day excursions that explore various cultural, historical, and natural aspects of Sri Lanka off the beaten path. Destinations and activities mentioned include exploring colonial gems in Colombo, experiencing festivals in Kandy, learning about cooking and markets, cycling, meditating at temples, train travel through tea country, fishing, plucking tea leaves, and more. The goal is to give travelers a richer experience of Sri Lanka beyond the major tourist areas.
UK newsbrands drive 605.3 million social media actions January - August 2015Newsworks
- The document analyzes social media interactions with UK newsbrands from August 2014 to August 2015.
- UK newsbrands saw a 92% year-over-year increase in global social media interactions, driven largely by growth on Facebook.
- The Daily Mail, Daily Mirror, and The Guardian had the most total Facebook interactions among UK newsbrands and global English language newspapers.
- While newsbrands are less reliant on Facebook than US publishers, Facebook remains the primary driver of social media interactions for UK newsbrands.
Stop Wasting Your Analytics Budget - edUi 2016Mitch Daniels
When approached with clear intentions, web analytics can be a game-changing part of any online presence. It can inform massive redesigns, drive additional engagement, and spur continued site improvements.
Despite its potential, the full power of analytics is often neutered by a misappropriation of priorities and resources, leading to a stream of sterile, uninspiring reports and dashboards. Learn to recognize these challenges, identify them within your own organization, and confront them head on.
We’ll explore the distinction between ‘interesting’ and ‘actionable’ data, the downsides of monthly reports, and the importance of the 10/90 rule. Finally, we’ll identify a single word that will immediately push your analytics strategy in the right direction: “Why?”.
Presentation by Maureen Costantino, Visual Information and Publications Specialist in CBO's Management, Business, and Information Services Division, at the Fourth Annual Global Network of Parliamentary Budget Officers Assembly.
This presentation provides an overview of the visual communications initiatives at CBO. It illustrates the evolution of graphics products at the agency, and some of the best practices that it has adopted for those products.
Here are 3 sample goals for a talent brand program:
1. Increase employer brand awareness among target candidates by 15% over the next 12 months.
2. Reduce time-to-hire by 10% and cost-per-hire by 5% within the next year.
3. Achieve a 90% employee engagement score and retention rate of 90% for new hires within their first year.
This is the powerpoint presentation I gave at the WASSIC 2011 conference. It's aimed at giving an overview of crowdsourcing, citizen science and social media - and the risks and opportunities that it brings for spatial practitioners.
"What we've learnt from Ember.js developing our new product" by Guillaume Pot...TheFamily
Par Guillaume Potier, CTO at Wisembly (https://twitter.com/guillaumepotier)
Entreprendre n’est pas inné et 80% des erreurs peuvent être évitées.
Ne perds pas de temps, offre-toi Koudetat : http://bit.ly/koudetat-youtube
Inscrivez-vous au prochain meetup! — http://www.meetup.com/StartupWorkshop
Inscrivez-vous à la newsletter pour ne pas rater les prochains évènements ! — http://www.thefamily.co/events/
On adorerait votre feedback & suggestion ! — https://thefamily.typeform.com/to/KlGLnM?date=09/04/2015
Este documento resume la historia de la telegrafía óptica en España durante el siglo XIX. Comenzó con el sistema de Agustín de Betancourt en 1799 entre Madrid y Aranjuez, pero solo funcionó durante dos años. Más tarde, Francisco Hurtado estableció líneas entre Cádiz y otras ciudades entre 1805 y 1820. Juan José Lerena construyó una red entre Madrid y los Sitios Reales entre 1831 y 1836. Finalmente, Manuel Santa Cruz desarrolló un sistema óptico y códigos durante las Guerras Carlistas entre
The document summarizes information on 16 famous Indian actresses from the 1940s to 1980s who worked in Bollywood: Suraiya, Madhubala, Nutan, Meena Kumari, Mala Sinha, Sharmila Tagore, Tanuja, Hema Malini, Zeenat Aman, Dimple Kapadia, Shabana Azmi, Sridevi, Parveen Babi. It provides brief details about each actress such as the films and decades they worked in, awards received, and accomplishments. Many of these actresses are considered among the most prominent and beautiful in the history of Indian cinema.
The document discusses deforestation in the Amazon and its impacts. It notes that expansion of agriculture has increased deforestation rates and could eliminate 40% of Amazon forests by 2050. Models show that large-scale deforestation reduces evapotranspiration and increases surface air temperatures and changes rainfall patterns. However, the impacts of small-scale, complex mosaics of land cover are less clear. Deforestation has increased river discharge in some watersheds due to reduced evapotranspiration and increased runoff, but has not significantly changed precipitation totals or the timing of the rainy season. The impacts on extreme weather events are still being studied using advanced modeling techniques.
Dierent methods have been used in the literature to mesure and analyze price markup cyclical behavior.
We use a medium-scale DSGE Model with positive trend in
ation, in which aggregate
uctuations are driven
by neutral technology, MEI and monetary policy shocks and, where both price and wage markups vary. We
nd that when raising trend in
ation from 0 to 4 percent, wage markup is more important than price markup
in explaining the dynamics eects of shocks.
1. In the perfectly competitive market, a firm’s marginal revenue .docxjackiewalcutt
1. In the perfectly competitive market, a firm’s marginal revenue (MR) is equal to:
its total cost
its marginal profit
the market price
its total revenue
2. The demand curve facing the firm in _________ is the same as the whole market demand curve.
perfect competition
monopolistic competition
oligopoly
monopoly
3. Individual cartel producers may find it advantageous to cheat on the agreements by increasing production,
if the other producers obey the agreements.
if every member cheats.
when the punishment on cheating is severe.
when the market demand is inelastic.
4. The profit-maximizing monopolist facing a negative-sloping demand curve will always produce
at an output greater than the output where average total costs are minimized.
at an output short of that output where average total costs are minimized.
at an output equal to industry output under perfect competition.
at an output short of that output where the profits are maximized.
5. The Lerner index, (P-MC)/P, might be an inappropriate measure for market power among firms in IT industry because
there are too many firms in the industry.
most firms charge a high price for their products.
all firms’ marginal costs are very low.
no firm has market power
6. In the long-run, a firm in a monopolistically competitive industry will
earn a positive economic profit
tend to just cover its total cost, maintaining a normal profit
charge a price equal to its marginal cost
become a monopoly
7. An average variable cost function is estimated as
AVC
= 96− 2Q + 0.05Q2
When Q=100, the average variable cost is _________.
rising
falling
unknown.
greater than $400
8. In the short-run for a perfectly competitive market, a manufacturer will stop production when:
the total revenue is less than total costs
the contribution cannot cover any fixed costs
the price is greater than AVC
operating at a negative economic profit
9. Refer to the following table showing the total cost schedule for a perfectly competitive firm:
Q
TC ($)
0
20
1
45
2
65
3
100
4
145
5
195
If market price is $40, how many units of output will the firm produce for profit-maximization?
2 units of output
3 units of output
4 units of output.
5 units of output.
2.5 points
10. Refer to the following table showing the total cost schedule for a perfectly competitive firm:
Q
TC ($)
0
20
1
45
2
65
3
100
4
145
5
195
If market price is $40, what is the maximum profit the firm can earn?
$15
$20
$25
$30
11. Refer to the following table showing the total cost schedule for a perfectly competitive firm:
Q
TC ($)
0
20
1
45
2
65
3
100
4
145
5
195
If market price is $20, how many units of output will the firm produce?
0, the firm shuts down.
1
2
3
12. Refer to the following table showing the total cost schedule for a perfectly competitive firm:
Q
TC ($)
0
20
1
45
2
65
3
100
4
145
5
195
...
Page 1 Microeconomics CH 9-10 Take home quiz. Mar.docxalfred4lewis58146
Page 1
Microeconomics: CH 9-10 Take home quiz.
Mark your answers on a Scantron BEFORE class. Bring your Scantron to Class On Monday,
November 26. Be sure to be on time, late Scantron forms will be penalized. Scantron forms
coming in after we complete the review in class cannot be accepted for points.
1. Perfect competition is a model of the market that assumes all of the following EXCEPT:
A) a large number of firms.
B) firms face downward-sloping demand curves.
C) firms produce identical goods.
D) many buyers.
2. Which of the following is true in a perfectly competitive market?
A) One unit of a good or service cannot be differentiated from any other on any basis.
B) Brand preferences exist but are very slight.
C) Barriers to entry are relatively strong.
D) Information is costly.
3. Marginal revenue:
A) is the slope of the average revenue curve.
B) equals the market price in perfect competition.
C) is the change in quantity divided by the change in total revenue.
D) is the price divided by the changes in quantity.
4. A firm's total output times the price at which it sells that output is:
A) net revenue.
B) total revenue.
C) average revenue.
D) marginal revenue.
5. In perfect competition:
A) price and marginal cost are the same.
B) price and marginal revenue are the same.
C) price and total revenue are the same.
D) total revenue and total variable cost are the same.
Page 2
Use the following to answer questions 6-9:
6. (Exhibit: Profit Maximizing) The exhibit shows cost curves for a firm operating in a
perfectly competitive market. Curve M is the _______ curve.
A) ATC
B) MR
C) MC
D) AVC
7. (Exhibit: Profit Maximizing) The exhibit shows cost curves for a firm operating in a
perfectly competitive market. Curve N is the _______ curve.
A) ATC
B) MR
C) MC
D) AVC
8. (Exhibit: Profit Maximizing) The exhibit shows cost curves for a firm operating in a
perfectly competitive market. If the market price is P3, the firm will produce quantity
_______ and _______ in the short run.
A) q2; make a profit
B) q1; break even
C) q2; incur a loss
D) q4; incur a loss
9. (Exhibit: Profit Maximizing) The exhibit shows cost curves for a firm operating in a
perfectly competitive market. If the market price is P4:
A) firms will leave the industry and the price will fall in the long run.
B) there will be economic profits in the short run and firms will enter the industry in
the long run driving the market price lower.
C) the market supply curve will shift to the left and price will fall in the long run.
D) the firm will continue producing q3 and will continue to make economic profits in
the long run.
Page 3
Use the following to answer questions 10-11:
10. (Exhibit: A Perfectly Competitive Firm in the Short Run) The lowest price that will
yield zero economic profits is indicated by th.
This document discusses various concepts related to oligopoly market structure including:
1) Oligopoly is characterized by few sellers that make interdependent decisions regarding price and output. Barriers to entry allow for potential economic profits in the long run.
2) Models of oligopoly include Cournot, Sweezy, and collusive models like cartels with price leadership.
3) Game theory can be used to analyze strategic interactions between oligopolists through concepts like the prisoner's dilemma, Nash equilibrium, and concentration measures.
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This document discusses global production sharing and its determinants based on economic theory and empirical evidence. It begins with defining global production sharing as the splitting of production processes across countries to take advantage of cost differences. It then reviews the literature on theories of global production sharing and models how factors like technology, institutions, infrastructure and macroeconomic stability can impact the costs of linking global production blocks. The document outlines an empirical model to test the determinants of network trade and parts/components exports using a gravity model framework. It finds that technology, institutions, infrastructure and macroeconomic stability significantly influence the level of global production sharing between countries.
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MBA 681 Economics for Strategic DecisionsPrepared by Yun Wan.docxalfredacavx97
MBA 681 Economics for Strategic Decisions
Prepared by Yun Wang
1. How does firm maximize profit.
2. Poduction decision in the perfect competitive market.
3. Production decision in monopolistic competitive market.
4. Production decision in oligopoly.
5. Production decision in monoply.
6. Two special models in oligopoly market.
1. How a Firm Maximizes Profit:
All firms try to maximize profits based on the following equation:
Profit = Total Revenue − Total Cost
The rules we have just developed for profit maximization are:
1. The profit-maximizing level of output is where the difference between total revenue and total
cost is greatest, and
2. The profit-maximizing level of output is also where MR = MC.
Notice: All of these rules do not require the assumption of market type; they are true for all
firms with different market structures (perfect competition, monopolistic competition,
oligopoly, monopoly)!
The Four Market Structures:Structures
Market Structure
Characteristic Perfect Competition
Monopolistic
Competition Oligopoly Monopoly
Type of product Identical Differentiated Identical or differentiated Unique
Ease of entry High High Low Entry blocked
Examples of
industries
Growing wheat
Poultry farming
Clothing stores
Restaurants
Manufacturing computers
Manufacturing automobiles
First-class mail delivery
Providing tap water
2. Profit Determination in Perfect Competitive Market:
A firm maximizes profit at
the level of output at which
marginal revenue equals
marginal cost.
The difference between
price and average total cost
equals profit per unit of
output.
Total profit equals profit per
unit of output, times the
amount of output: the area
of the green rectangle on the
graph.
In the graph on the left, price
never exceeds average cost,
so the firm could not possibly
make a profit.
The best this firm can do is to
break even, obtaining no
profit but incurring no loss.
The MC = MR rule leads us to
this optimal level of
production.
The situation is even worse
for this firm; not only can it
not make a profit, price is
always lower than average
total cost, so it must make
a loss.
It makes the smallest loss
possible by again following
the MC = MR rule.
No other level of output
allows the firm’s loss to be
so small.
Identifying Whether a Firm Can Make a Profit
Once we have determined the quantity where MC = MR, we can immediately know
whether the firm is making a profit, breaking even, or making a loss. At that quantity,
• If P > ATC, the firm is making a profit
• If P = ATC, the firm is breaking even
• If P < ATC, the firm is making a loss
Even better: these statements hold true at every level of output.
However, if the price is too low, i.e. below the minimum point of
AVC, the firm will produce nothing at all.
The quantity supplied is zero below this point.
3. Profit Determination in Monopolistic Competitive Market:
(1 of 3)
In the short run, a monopol.
11.[38 44]sales forecast by taking the concept of blue ocean theory using mat...Alexander Decker
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was conducted on various construction company in accordance to sectors A to D. It has been concluded that the % mark-up percentage had a minor effect on the win or loss of the contract bid between
different sectors. This research has found that (1) the null hypothesis cannot be rejected at the 5% significance level the samples showed no significant proof to which of the sectors is more successful in winning bids than other, (2) the regression analysis indicated that as
the estimated cost increases the % mark-up decrease for all sectors, (3) the t-test illustrated no significant difference existing between the mean estimated cost and mean % mark-up between contracts won
and contracts lost for all sectors, since the value of t Stat was less
than t-critical two tailed the null hypothesis cannot be rejected and (4) there is a stronger correlation existing for the successful bids than
unsuccessful.
Effect of isoelastic form of price dependent demand in cooperative advertisingiosrjce
This is an extension of the co-operative advertising model developed earlier by the authors. We
develop a manufacturer-retailer channel co ordination where the demand is modeled as a multiplicative effect
of price and an additive sales response function. We change the form of demand here as an extension to earlier
model developed by the authors .We use isoelastic form of the price dependent demand instead of the linear
form to observe changes in the model if any. We develop both sequential and simultaneous moves non cooperative
game structures where both retailer and manufacturer act simultaneously and independently and
compare them through propositions. Finally we develop a cooperative model and discuss the optimality of
pareto efficient scheme.
This document discusses economic efficiency and different market structures. It begins by defining economic efficiency and its various forms, including allocative efficiency, productive efficiency, and dynamic efficiency. It then examines different market structures - perfect competition, monopoly, monopolistic competition, and oligopoly - and evaluates how efficiently each allocates resources. Perfect competition achieves full efficiency while monopoly and imperfect competition can be inefficient. Contestable markets use the threat of entry and exit to make monopolies behave more competitively.
Costs include both explicit costs that require money outlays and implicit costs that do not require money but represent opportunities forgone. Marginal cost is the change in total cost from producing one more unit and is important for profit maximization. In the short run, some costs are fixed while in the long run all costs are variable as firms can adjust all inputs. Economies and diseconomies of scale affect average total cost as the scale of production changes.
This document contains review questions about perfect competition. It includes questions about profit maximization for a perfectly competitive firm given cost and revenue information. It asks the student to determine the optimal output level and profits for a small tomato grower facing different market prices. It also contains questions about break-even points, short-run supply curves, and long-run equilibrium for a perfectly competitive industry. The student is asked to apply concepts of marginal cost, average cost, and profit maximization to firms operating under perfect competition.
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Topics in IO
1. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
National wage bargaining in an
internationally integrated product market
Giacomo Corneo (1995). European Journal of Political Economy, vol.11,
page 503-520
Marko Ledic
Topics in IO - Assignment
University of Milan
2. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Introduction
The process of integration of product markets (among countries or
regions) influences the strategic decisions made by firms which
brings upon a change in national wage setting mechanism as well.
The effect of product market integration on the labour market
should take into account heterogeneity in the institutional settings,
like the degree of centralization in collective bargaining, trade union
density, minimum wage, unemployment benefits and the government
role in the wage bargaining.
Literature that combined the wage bargaining and imperfect
competition while assuming a symmetric bargaining games:
Dixon (1988), Dorwick (1989), De Fraja (1993).
3. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Introduction
Corneo (1995) develops a model of integrated product market
leaving out the assumption of symmetry.
Products are supplied by oligopolistic firms located in different
countries.
Wage costs of each firm determined by idiosyncratic wage
bargaining.
The main aim of the model is to investigate:
The impact of product market integration on international wage
differentials.
The form of externalities among countries that affect wage settings.
How centralization and coordination of wage bargaining affect
employment and social welfare.
4. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
The Model
Model’s assumptions:
Homogeneous commodity with a linear inverse demand function
p(Q) = a − bQ.
There are j = 1, ..., n identical profit maximizing firms that supply
the commodity.
Firms technology exhibits a CRS with respect to labour and qj = lj
where qj is output and lj is employment level.
Two countries model: A (with firms j = 1, ..., m) and B (with firms
j = m + 1, ..., n).
In both countries each worker supplies labour to one of the firms and
workers are supplied with one unit of labour.
Each firm hire from a continuum of workers of equal size.
Workers preferences are given by the indirect utility function
Uj = sj (lj )wj + (1 − sj (lj )) ¯wj where sj represents the survival
probability and ¯wj represents expected income of a worker who loses
his/her job in the firm.
Union’s bargaining power, union’s utility and degree of centralization
of bargaining power can differ across countries.
5. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
The Model
Model’s assumptions:
Wage bargaining is either simultaneous or sequential.
The game starts with wage bargaining in each country and then
firms simultaneously choose their level of employment which gives
the equilibrium output and price.
Under the assumption of homogeneous labour institutions across
countries, Corneo’s (1995) model transforms into the case of
Dowrick (1989) model that can be taken as a benchmark.
Equilibrium wage under industry-level bargaining
wind∗
= ¯w +
γ(a − ¯w)
2
(1)
Equilibrium wage under decentralized bargaining
wfirm∗
= ¯w +
γ(a − ¯w)
2n − γ(n − 1)
(2)
By comparing these two equilibrium wage levels we see that under
industry-level bargaining the equilibrium wage level is lower due to
absence of competitive mechanism.
6. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Decentralized Bargaining
Country Specific Case
This section departs from the assumption of institutional symmetry
as in the benchmark model and assumes that firm-level bargaining
takes place simultaneously in countries A and B.
The asymmetry across countries arises from different reservation
wage and union bargaining power.
The equilibrium wage for firm A and B in the simultaneous game:
wfirm∗
A = ¯wA +
γA [(a − wA) (2n + γB ) − (wA − wB ) (n − m) (2n − γB n)]
(2n + γA) [2n − γB (n − 1)] 2nm (γA − γB )
(3)
wfirm∗
B = ¯wB +
γB [(a − wB ) (2n + γA) − (wB − wA) (n − m) (2n − γAn)]
(2n + γB ) [2n − γA (n − 1)] 2nm (γB − γA)
(4)
Equations 3 and 4 collapse to equilibrium wage level under
decentralized wage bargaining (equation 2) if γA = γB = γ and if
wA = wB = ¯w.
7. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Decentralized Bargaining - Country specific case
Country Specific Case
Proposition 1
The wage level in one country is an increasing function of union
bargaining power and the reservation wage in both countries.
We can notice a positive externality between wage levels in countries
A and B. Wage level in any of these two countries arises when the
bargaining power of unions increases in one country (due to
increasing γ or ¯w).
In the case of single product market, this increase in wage will lower
the impact of competition for the firms abroad since the later firms
will acquire higher wage costs.
8. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Heterogeneous Degree of Centralization
Synchronized Bargaining
In this setting the wage level in country A is determined at
industry-level bargaining while in country B the wage level is
determined under decentralized bargaining.
Equilibrium wage in country A under industry-level bargaining
wind−firm∗
A = ¯w +
γ(2n + γ)(a − ¯w)
Z
(5)
Equilibrium wage in country B under decentralized bargaining
wind−firm∗
B = ¯w +
γ[Z + γm(2n + γ)](a − ¯w)
[2n − γ(n − m − 1)]Z
(6)
where Z is a positive constant
9. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Heterogeneous Degree of Centralization
Synchronized Bargaining
Proposition 2
Under synchronized wage setting, wages in the country with
industry-level bargaining are higher than in the country with firm-level
bargaining. The wage level is lower in the former country then under
overall industry-level bargaining (and vice versa).
Setting a uniform wage in country A hampers union/firm pairs in
lowering wages and therefore the wage in county A will be higher
then under decentralized wage bargaining.
Decentralized wage setting in country B yields a higher wage.
10. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Heterogeneous Degree of Centralization
Sequential Bargaining
In this setting, first the bargaining process at the industry level
happens for country A (leader), then for country B (follower), the
wage is bargained at firm-level and at the end we have a Cournot
competition in the single product market.
Solving the game by backward induction the following results apply:
The best response wage-function for the follower in country B
wB (wA) = ¯w +
γ[a − ¯w + m(wA − ¯w)]
2n − γ(n − m − 1)
(7)
The equlibrium wage for a leader in country A
wind−firm∗
A,leader = ¯w +
γ[(2n + γ)(a − ¯w) + γ ¯w(n − m)(n − 2)]
2[(n + 1 − m)(2n − γn + γ) + γm]
(8)
11. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Heterogeneous Degree of Centralization
Sequential Bargaining
Proposition 3
Under heterogeneity in degrees of centralization, wages in both countries
are higher and industry employment is lower when bargaining is
sequential rather than synchronized.
In this case there exist a positive externality between the wage level
in country A and B.
Higher wage can be obtained in country A at the industry-level
under simultaneous bargaining (than it was the case for
synchronized bargaining) and the same bargaining motives apply for
wage bargaining for firms in country B.
In sequential bargaining we have a lower level of employment and
output, a higher product price than it was the case in synchronized
bargaining.
12. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Industry-level Bargaining
Synchronized Bargaining
Assuming that the wage bargaining takes place at the industry-level
in both countries, the equilibrium wages are as follows:
wind−ind∗
A = ¯w +
γ(a − ¯w)[(2(m + 1) + γ(n − m)]
4(n + 1 − m)(m + 1) − γ2m(n − m)
(9)
wind−ind∗
B = ¯w +
γ(a − ¯w)[(2(m + 1) + γ(m)]
4(n + 1 − m)(m + 1) − γ2m2
(10)
Proposition 4
Under synchronized national bargaining at the industry-level, the wage
level is higher in the larger country. Wages in both countries are lower
then in the case of overall industry-level bargaining.
In other words, under the integrated product market setting, large
countries have the advantage in determining the wage level that can
be increased, while small countries are absence of this advantage.
13. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Industry-level Bargaining
Sequential Bargaining
Assuming that the wage bargaining takes place at the industry-level
in both countries but country A is the leader and country B is the
follower
The best response wage-function for the follower in country B
wB (wA) = ¯w +
γ[a − ¯w + m(wA − ¯w)]
2(m + 1)
(11)
The equlibrium wage for a leader in country A
wind−ind∗
A,leader = ¯w +
γ(a − γ)[(2(m + 1) + γ(n − m)]
2(n + 1 − m)(m + 1) − γm(n − m)
(12)
Proposition 5
Under national bargaining at the industry-level, wages in both countries
are higher and industry employment is lower, when bargaining is
sequential rather than synchronized.
Comparing the equations 9 and 10 with the equations 11 and 12 we
can notice that sequential bargaining yields a higher wage level for
both countries that it was the case under synchronized
bargaining(note that γ ∈ (0, 1)).
14. Introduction The Model Decentralized Bargaining Heterogeneous Degree of Centralization Industry-level Bargaining Conclusion
Conclusion
Corneo’s (1995) model indicated the possible externalities that
might emerge on integrated product markets from the heterogeneity
in institutional settings between countries.
One implication of the following model is that even after integration
of product market, the wage differentials are still pertinent as a
result of heterogeneous labour market institutions across countries.
When bargaining takes place at the industry-level and when a
country is characterized by ”stronger” unions, then the equilibrium
wages are higher and equilibrium employment is lower then it would
be the case for a country with firm-level bargaining.
The model showed that synchronized wage bargaining across
countries would imply a lower wage and higher employment then in
sequential bargaining case.