Contemporary demand input models in the conditions of imperfect competition

Abstract

The authors present and critically analyze contemporary microeconomic models of demand optimization of input factors in different conditions of imperfect competition on input and output markets. The first part of the work considers the problems of optimization of the application of labor and capital input in the conditions of competitive input market and the positions of a perfect monopolist, the input seller. In this part, ideas on the phenomenon of monopolistic labor exploitation are specially considered. Then, it is followed by the consideration of characteristics of input demand optimization in case of monopsony, i.e. optimization in case of competitive output market and the position of the firm as a monopsonist on input market. The concluding part of the work represents the critical analysis of the so-called bilateral monopoly, i.e. supply and demand optimization of some input when a monopolist's market strategy is optimized and harmonized, as the only bidder and monopsonist, i.e. the only buyer of some input.