Dissertation Information for Trevor RoycroftNAME:
DEGREE:
DISCIPLINE:
SCHOOL: ADVISORS: COMMITTEE MEMBERS: MPACT Status: Incomplete - Not_Inspected Title: Sorting, bonding, and barriers to entry: Strategies of the entry-concerned firm
Abstract: "This dissertation marks a significant departure from the established theoretical justification for the wage differentials which have been observed to persist across industries. The model begins with a protected monopolist who is able to distinguish between high and low productivity employees. When entry is allowed, the entrant has this capability as well. We will see that under certain conditions, the monopolist will sort for high productivity workers, and impose a lower level of profits on any potential entrant than if the sorting option had not been pursued. The necessary and sufficient conditions for the imposition of a strategic entry barrier and an innocent entry barrier are illustrated. The model is then extended to allow potential entrants to bid the sorted workers away from the monopolist. It is shown that if the protected monopolist uses a bonding strategy, such as offering workers a pension plan, the potential entrants will not be able to bid workers away at low cost. Finally, we discuss the implications of this model if firms are not able to distinguish between low and high productivity workers when all workers are offered the going wage. This last extension of the basic model shows a link between high wages and concentrated industries, loosely following the efficiency wage hypothesis. |
MPACT Scores for Trevor RoycroftA = 0 Advisors and Advisees Graphgenerating graph, please reload |
Students under Trevor Roycroft
ADVISEES:
- None
COMMITTEESHIPS:
- Judith Ann Molka-Danielsen - University of Pittsburgh (1996)