Managerial Delegation under Alternative Unionization Structures
AbstractThis paper studies a three-stage duopoly game with managerial delegation and (monopoly) unions that can be either decentralized or industry-wide. Main findings point out the opposite role played by the introduction of managerial delegation according to the different nature of unionization structure. Indeed, while under industry-wide union managerial delegation leads to incentives for sales, lower profits and higher consumer surplus as well as overall welfare, in the presence of decentralized (firm-specific) unions all those results are reversed. Moreover, and most importantly, introducing managerial delegation makes unionization structure neutral in relation to consumerâs surplus and overall efficiency.
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Volume (Year): 27 (2013)
Issue (Month): 1 (03)
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Other versions of this item:
- Nicola Meccheri & Luciano Fanti, 2012. "Managerial delegation under alternative unionization structures," Discussion Papers 2012/138, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
- Luciano Fanti & Nicola Meccheri, 2012. "Managerial Delegation under Alternative Unionization Structures," Working Paper Series 07_12, The Rimini Centre for Economic Analysis.
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
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