1. 1 Wage Setting vs. Wage Taking Inhisground-breakingmonographMonopsonyin Motion: Imperfect Competitionin Labor Markets, Manning (2003a, p. 3) starts his argument in favour of a monop- nistic approach to labour market phenomena with a compelling case against perfect competition: What happens if an employer cuts the wage it pays its workers by one cent? Much of labor economics is built on the assumption that all existing workers immediately leave the rm as that is the implication of the assumption of perfect competition in the labor market. Taking the model literally, this would indeed be its...