THE EMPLOYER SIZE-WAGE EFFECT: CAN DYNAMIC MONOPSONY PROVIDE AN EXPLANATION?

In this paper we argue that a dynamic monopsony model (basedon labour market frictions) predicts a positive relationshipbetween wages and employer size, but also that the effect willbe larger in the non-union sector than in the union sector,and larger for women than for men. We examine evidence on theemployer size-wage effect using several microeconomic data sources,and find it to be generally consistent with these predictions.After examining other theoretical explanations, our conclusionis that at least part of the employer size-wage effect is aresult of monopsony power in the labour market.     

MAY ISSUE VERSUS SHALL ISSUE: EXPLAINING THE PATTERN OF CONCEALED-CARRY HANDGUN LAWS, 1960–2001

We analyze the timing and pattern of adoption of "shall issue" concealed-carry handgun laws. "Shall issue" laws require the authorities to issue permits to qualified applicants; "may issue" laws give the authorities more latitude to reject applications. We find three factors influence the shift from "may issue" to "shall issue." First, more urban states are less likely to shift to "shall issue," although the size of this effect is quantitatively small. Second, the switch is influenced by the decisions taken by neighboring states. Third, we find evidence that increases in the crime rate accelerated the switch to "shall issue." ( JEL K40)     

Cities and the ‘War on Terror’

Programmes of organized, political violence have always been legitimized and sustained through complex imaginative geographies. These tend to be characterized by stark binaries of place attachment. This article argues that the discursive construction of the Bush administration’s ‘war on terror’ since September 11th 2001 has been deeply marked by attempts to rework imaginative geographies separating the urban places of the US ‘homeland’ and those Arab cities purported to be the sources of ‘terrorist’ threats against US national interests. On the one hand, imaginative geographies of US cities have been reworked to construct them as ‘homeland’ spaces which must be re‐engineered to address supposed imperatives of ‘national security’. On the other, Arab cities have been imaginatively constructed as little more than ‘terrorist nest’ targets to soak up US military firepower. Meanwhile, the article shows how both ‘homeland’ and ‘target’ cities are increasingly being treated together as a single, integrated ‘battlespace’ within post 9/11 US military doctrine and techno‐science. The article concludes with a discussion of the central roles of urban imaginative geographies, overlaid by transnational architectures of US military technology, in sustaining the colonial territorial configurations of a hyper‐militarized US Empire.     

PAYING FOR LOYALTY: PRODUCT BUNDLING IN OLIGOPOLY*

In recent times, pairs of retailers such as supermarket and retail gasoline chains have offered bundled discounts to customers who buy their respective product brands. These discounts are a fixed amount off the headline prices that allied brands continue to set independently. We show that a pair of firms can profit from offering a bundled discount to the detriment of other firms and consumers whose preferences are farther removed from the bundled brands. Indeed, when both pairs of firms negotiate bundling arrangements, there are no beneficiaries and consumers simply find themselves consuming a sub‐optimal brand mix.