Sure. I meant under naive perfect competition assumptions, which are also
the tenets of business lobby ideology.
I vaguely remember the quality-price thing. Was there much follow-up to
that paper?
And, by the way, contra Max, persistent ("equilibrium") shortages are most
definitely not "impossible" in micro. They can arise due to monopsony
power or a phenomenon Stiglitz refers to as "the dependence of quality on
price." It is typical to have supra-market-clearing equilibrium wages in
the latter scenario.
Gil
--
----------------------------------------
I am using the free version of SPAMfighter for private users.
It has removed 12838 spam emails to date.
Paying users do not have this message in their emails.
Get the free SPAMfighter here: http://www.spamfighter.com/len
