Labour mobility is the main response to regional differences between states in the United States, and tends to result from unemployment rather than a change in consumption wages. The case of Massachusetts illustrates this, and the relative lack of job migration or creation as a solution to unemployment resulting from a regional slump. Movement of companies triggered labor migration, and was the main reason for differentials in employment growth in states within the United States. It appears that wages do not adjust downwards sharply enough to prevent unemployment, but rather out-migration tends to be the result, a finding which has implications for Europe.
Publication Name: Brookings Papers on Economic Activity
The generalized war of attrition
An analysis of economic competition which is likened to wars of attrition is done by means of a general model which incorporates natural oligopoly and the standards versions as special cases. The model takes into account multiple competitors or players in a particular setting. The results showed that exit behavior of a player is unaffected by the number of competitors and their actions. Building voting majorities and standard setting are examples of situations where this type of player exit behavior may occur.
Publication Name: American Economic Review
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