Eric Toulemonde

Eric Toulemonde
University of Namur | FUNDP · Centre for Research in Regional Economics and Economic Policy (CERPE)

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46
Publications
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438
Citations
Introduction
Skills and Expertise

Publications

Publications (46)
Article
Full-text available
We introduce asymmetries across platforms in the linear model of competing two-sided platforms with singlehoming on both sides and fully characterize the price equilibrium. We identify market environments in which one platform has a larger market share on both sides while obtaining a lower profit than the other platform. This is compatible with hig...
Article
Full-text available
Dans son communiqué de presse du 9 avril 2016 relatif au contrôle budgétaire, le gouvernement belge annonce, parmi les réformes structurelles, la taxation de ce qu’il est convenu d’appeler l’économie collaborative, dont les figures emblématiques sont des plateformes numériques comme Airbnb, Uber ou Listminut. Le communiqué n’indique pas la manière...
Article
Full-text available
We analyze the effects of various taxes on competing two-sided platforms. First, we consider nondiscriminating taxes. We show that specific taxes are entirely passed to the agents on the side on which they are levied; other agents and platforms are left unaffected. Transaction taxes hurt agents on both sides and benefit platforms. Ad valorem taxes...
Article
We show that the market does not systematically deliver the right technology under monopolistic competition. (i) Firms might rush on large-scale technology, pushing to the exit many desirable varieties produced by small firms. (ii) Firms might shun large-scale technology, though that technology would benefit the society through lower prices. (iii)...
Article
Full-text available
We introduce within-group external effects in the two-sided singlehoming model of Armstrong (2006). First, we propose a general characterization of the platform access fees at the symmetric equilibrium of the game. Second, we combine this general formulation with a specific modeling of the relationship between buyers and sellers on B2C platforms, s...
Article
Full-text available
We consider the effects of taxes for competing two-sided platforms. We first detail how a platform passes a tax increase on its prices. Adding price competition, we study next how the tax affects profits. Because of the strategic implications of the cross-side external effects, the tax increase may end up increasing the profit of the taxed platform...
Article
Countries set norms to protect consumers against ill-functioning products. In the absence of coordination, countries can set different norms and still achieve the same level of consumer protection. Such differences in specifications create barriers to trade because exporting firms incur adaptation costs. The principle of mutual recognition addresse...
Article
In a model with two countries of different size, we examine the effects of a fall in trade costs on firms' location, on their number of plants, on their production and on regional production and welfare. The possibility to run several plants reduces the strength of the home market effect. Regional production and welfare may move non‐monotonically w...
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Recent empirical contributions in labor economics suggest that individual firms face upward sloping labor supplies. We rationalize this by assuming that idiosyncratic non-pecuniary conditions interact with money wages in workers’ decisions to work for specific firms. Likewise, firms supply differentiated goods in response to differences in consumer...
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Abstract In the Dixit-Stiglitz model of monopolistic competition, entry of firms is socially too small. Other authors have shown that excess entry is also a possibility with other preferences for diversity. We show that workers' rents also contribute to explain excess entry through a general equilibrium mechanism. Larger wages indeed raises the agg...
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Two types of agents interact on a pre-existing free platform. Agents value positively the presence of agents of the other type but may value negatively the presence of agents of their own type. We ask whether a new platform can find fees and subsidies so as to divert agents from the existing platform and make a profit. We show that this might be im...
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Governments set numerous norms to protect consumers. Two countries may achieve the same level of protection of their consumers through different specifications. The adaptation costs induced by these differences create barriers to trade. The principle of mutual recognition addresses the problem by ensuring that products lawfully manufactured in one...
Article
The paper builds an analytically tractable model that illustrates the “proximity–concentration trade-off” involved in horizontal multinationals. For low trade costs, firms are single-plant firms, for intermediate costs, some are single-plant firms whereas others are multinationals, for large trade costs, firms are multinationals. Because of the mod...
Article
In this paper, based on the cyclic scheduling formulation of Schilling and Pantelides [22], we propose a continuous time mixed integer linear programming (MILP) formulation for the cyclic scheduling of a mixed plant, i.e. a plant composed of batch and continuous tasks. The cycle duration is a variable of the model and the objective is to maximize p...
Article
The paper develops an analytically solvable model of new economic geography in which agglomeration of firms is caused by workers' investment in the acquisition of skills. Skilled workers earn high wages and have a large demand for goods. Since firms are attracted towards the demand, they locate at proximity of skilled workers. More workers invest i...
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We show that for large trade costs, all firms are multinationals and countries's production levels are proportional to their sizes. A fall in trade costs reduces the number of multinationals and increases the number of single-plant firms in a large country. Depending on trade costs, the number of single-plant firms in the small country may increase...
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In the Dixit-Stiglitz model of monopolistic competition, entry of firms is socially too small. Other authors have shown that excess entry is also a possibility with other preferences for diversity. We show that the cost structure and workers's rents can also explain excess entry.
Article
Full-text available
In a successive vertical oligopoly, a set of "sellers" produce some input to be transformed into a final product by a set of "buyers". On this two-sided market, a firm's profit increases with the number of firms of the other type and decreases with the number of firms of its own type. We examine the emergence or the entry of a new marketplace spons...
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In modern economies, the amount of profits distributed to shareholders is far from being negligible. We show that the way they are distributed among agents matters for the space-economy. For example, the existence of mobile rentiers is sufficient to make the symmetric configuration unstable for all transport cost values and to allow for the partial...
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This article investigates agglomeration processes in ageing societies by introducing an overlapping generation structure into a New Economic Geography model. Whether higher economic integration leads to spatial concentration of economic activity crucially hinges on the economies' demographic properties. While population aging as represented by decl...
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It is often hypothesized that costs of adjusting both price and quantities may have important implications for the macroeconomic adjustment process, not least to nominal shocks. We analyse this in an explicit intertemporal general equilibrium model considering the empirically relevant case of fixed costs of adjusting prices and fixed and variable c...
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We develop a simple model to illustrate how the effects of turnover costs on wages can be reinforced by an efficiency wage effect. The insider-outsider theory explains why labour turnover costs allow the insiders to earn higher wages than outsiders. According to the efficiency wage theory, higher wages enhance the insiders' productivity. Therefore,...
Article
We study the geographical location of a unionized manufacturing industry under technological externalities. When firms benefit from locating in the vicinity of similar firms, we show that they locate in symmetric, partially asymmetric or single clusters. We examine the effects of changes in the productivity parameters, in the product demand paramet...
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Full-text available
This is a successive oligopoly model with two varieties of a final product. Downstream firms choose one variety to sell on a final market. Upstream firms specialize in the production of one input specifically designed for one variety, but they also produce the input for the other variety at an extra cost. We show that as more downstream firms choos...
Article
This paper analyzes firms' location when workers endogenously choose to qualify for professional skills but when they remain uncertain about the potential match between their personal abilities and/or affinities and the firms' specific production tasks. By qualifying in a region where firms agglomerate, workers benefit from higher prospects of good...
Article
Full-text available
An analytically solvable model of new economic geography is developed. Acquisition of skills is costly for workers but it allows them to earn wages that are larger than those of the unskilled. Moreover, skills acquisition can be subsidized by a regional government. For large transport costs, firms spread more or less evenly between regions, their p...
Article
Full-text available
In modern economies, the amount of profits distributed to shareholders is far from being negligible. We show that the way profits are distributed among agents matters for the space-economy. For example, the existence of mobile rentiers is sufficient to make the symmetric configuration unstable for all transport cost values and to make partial agglo...
Article
Economic geography models predict the agglomeration of manufacturing activies only if the workforce is mobile. Still, as the E.U.'s experience shows, core–periphery patterns exist even though the workforce is rather immobile. The paper provides a theoretical explanation for such core–periphery patterns through the effect that unions have on firms’...
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We integrate imperfectly competitive labour markets in a dynamic macromodel. In accordance with empirical evidence, we find that temporary shocks are consistent with little real wage and large employment responsiveness, while permanent shocks affect real wages and not employment.
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This paper analyses the evolution of employment in the Belgian provinces during the period 1974-92. It identifies provincial, industrial and temporal effects. This allows us to construct a 'virtual' employment series by filtering out provincial effects. A comparison with actual employment provides a good indication of the employment performance of...
Article
In this paper we study the employment effects of a budget neutral restructuring of taxes levied on employers and employees. We derive conditions for taxes levied on workers to have the same employment effects as taxes levied on firms under standard processes of wage determination. Copyright 2001 by Scottish Economic Society.
Article
This paper investigates the impact of labor markets and economies of agglomeration on firms location. We show that the existence of a lower bound on wage (e.g. a minimum wage or a reservation wage) introduces asymmetric location of firms. Moreover, changes in that lower bound or in global product demand may induce irreversible changes in location e...
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We exploit the common features of models such as union-firm wage bargaining, search and efficiency wage models to develop a framework that can be used for analyzing the effects of any budget-neutral tax reform on employment in these models. We show that taxes paid by workers are not equivalent to taxes paid by firms when taxes are non linear. Moreo...
Article
It is shown that a monopolistic firm under uncertainty may be inclined to keep some of its output unsold when demand is low. This gives rise to changes in conventional results. Under uncertainty, a risk-neutral monopolistic firm produces more than in a deterministic environment and it refuses to sell its total output when demand is low, because the...
Article
In this paper the authors study the the employment effects of a budget and revenue neutral restructuring of taxes levied on employers and employees. The authors derive a necessary and sufficient condition for taxes levied on workers to have the same employment effects as taxes levied on firms. Then they check whether this condition holds under diff...
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Full-text available
The standard efficient contract involving a monopolistic firm and a union has always been derived under the assumption that the firm operates efficiently, i.e., it fully uses its labor force. However, nothing constrains the firm to do so and production with underutilization of labor may occur. The implications of ignoring that possibility and the c...
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The usual 'efficient' bargaining solution between a monopolistic firm and a union has always been derived under the constraint that the firm produces on its production frontier. The authors show that, if the union is risk-averse and powerful enough, this constrained efficient bargaining solution may lead to a negative marginal revenue. In this case...
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We examine the effects of trade costs and country sizes on the parti-tion of firms between multinationals and single-plant firms. Depending on trade costs, the number of single-plant firms and the production (and em-ployment) in the small country may increase or not. We also endogenize country sizes and identify "weakly stable" equilibria with mult...
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One of the main results of the theoretical models of wage bargaining is that wages are independent of productivity when the production function has a constant elasticity. However empirical studies show that in the long run, wages fully react to productivity shocks. This paper reconciles both results. It identifies the assumptions that yield the the...
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Standard models of imperfectly competitive labour market predict that real wages are unaffected by productivity. This is in conflict with empirical evidence. We integrate imperfectly competitive labour markets in a fully specified dynamic macromodel. While temporary shocks are consistent with the business cycle fact of little real wage and large em...

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Projects (2)
Project
We introduce within-group external effects in the two-sided sin glehoming model of Armstrong (2006). First, we propose a general characterization of the platform access fees at the symmetric equilibrium of the game. Second, we combine this general formulation with a specific modeling of the relationship between buyers and sellers on B2C platforms, so as to analyze how changes in the underlying characteristics of the product market affect the equilibrium of the game. We show that an increase in the number of sellers may benefit sellers while hurting buyers. We also show that sellers and buyers prefer full product differentiation while platforms prefer no differentiation.