Monopsony and the Production-Location Decision of the Firm

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Title:	Monopsony and the Production-Location Decision of the Firm
Authors:	麥朝成;Mai, Chao-cheng;Suwanakul, Sontachai;Yeh, Chiou-nan
Contributors:	淡江大學產業經濟學系
Date:	1993-12
Issue Date:	2011-09-29 10:55:27 (UTC+8)
Publisher:	Elsevier
Abstract:	This paper incorporates monopsony power in one of the input markets within the context of the Weber-Moses triangular framework and examines the effect of an increase in monopsony power on the production-location decision of the firm. In particular, this paper shows that the optimum location of the firm is independent of monopsony power if the production funstion is homogeneous of degree one. However, if the production function is not homogeneous of degree one, the firm possessing monopsony power will have an incentive to move its location away from the monopsonized input market towards other markets under certain reasonable assumptions. Finally, some important policy implications are generated from the analysis.
Relation:	Regional Science and Urban Economics 23(6), pp.779-790
DOI:	10.1016/0166-0462(93)90022-7
Appears in Collections:	[Graduate Institute & Department of Industrial Economics] Journal Article

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