Kushnir, Alexey Tarasov, Alexander Zubrickas, Robertas
Year of Publication:
CESifo Working Paper No. 8360
We consider a model of monopolistic competition with several heterogeneous sectors and endogenous labor supply. For low (high) values of the labor supply elasticity, we show that there is always a unique equilibrium. For medium values of the labor supply elasticity, the set of equilibria (if non-empty) can comprise of several equilibria, with the number of equilibria bounded by the number of sectors.