Monopsony Makes Firms Not Only Small but Also Unproductive: Why East Germany has Not Converged
Rüdiger Bachmann; Christian Bayer; Heiko Stueber; Felix Wellschmied · 2026 · The Review of Economic Studies
WASTE classifies this as Negative / Null Result Report · AI classification, approximate
The study found no significant effect — useful as a negative control or null benchmark for your own design.
Abstract (excerpt)
Abstract When employers face a trade-off between being large and paying low wages—and in this sense have monopsony power—some productive employers decide against building large business networks, forgo sales, and remain small. These…
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Metadata source: OpenAlex · DOI 10.1093/restud/rdag033