Journal of Evolutionary Economics

, Volume 27, Issue 5, pp 989–1005 | Cite as

Extended oligopolies with contingent workforce

  • Akio Matsumoto
  • Ugo Merlone
  • Ferenc Szidarovszky
Regular Article


In the oligopoly literature, the introduction of modified cost functions has added reality into the classical analysis. In particular, some recent contributions analyzed oligopoly dynamics when considering production adjustment costs. Although this is a step in building more realistic models, adjustment costs may be different depending on the adjustment direction. In fact, when quantity decreases, firms may decide to lay off workers; by contrast, when quantity increases, new workers need to be hired and this entails searching and selection costs. In this paper, dynamic single-product oligopolies without product differentiation are first examined and then we study how this dynamic is affected by the additional adjustment costs. The resulting dynamic is complex and the consequences of this complexity are examined in terms of policy making.


Oligopolies Repeated games Complex dynamics 

JEL Classification

C72 C73 


Compliance with Ethical Standards

Author Akio Matsumoto has received research grants from the MEXT-Supported Program for the Strategic Research Foundation at Private Universities 2013-2017 and Chuo University (Joint Research Grant). The other authors declare that they have no conflict of interest.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2017

Authors and Affiliations

  1. 1.Department of EconomicsChuo UniversityHachioji, TokyoJapan
  2. 2.Department of Psychology, Center for Cognitive Science, via Verdi 10University of TorinoTorinoItaly
  3. 3.Department of Applied MathematicsUniversity of PécsPécsHungary

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