Simulation of employment and growth processes in a transition economy (Q1974314)

In the present paper, an attempt is made to construct and analyse a number of models of the situation in the labour market at the initial stage of economic reforms. In the first section, the authors considers a monopoly price formation in a labour market with an employer-monopolist. This model is used in the second section to analyse the relation between the wages and production dynamics, to investigate the mechanisms of depression in a market economy, and to estimate the effect of uncertainty of the model parameters. In the third section, a model of oligopoly competition among employers is proposed based on the theory of non-antagonistic games, the existence of Nash-optimal solution is proved, and their properties are analysed. Finally conclusions and lines of further investigations are discussed in the fourth section.