| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059455 | Economics Letters | 2014 | 4 Pages |
Abstract
This study constructs a general oligopolistic equilibrium model in which Smith's (1776) famous theory of the division of labor under vertical specialization is embedded. We demonstrate that a pro-competitive government policy weakens the division of labor and hence reduces firm productivity, total output, and aggregate welfare. In addition, the policy promotes an increase in workers' welfare and a decrease in firm owners' welfare.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Keita Kamei,