Managerial Delegation under Alternative Unionization Structures
AbstractThis paper studies a three-stage duopoly game with managerial delegation and 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. 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 unionization all those results are reversed unless unions are strongly employment-oriented. Moreover, introducing managerial delegation makes unionization structure neutral in relation to consumerâs surplus and overall efficiency. Finally, the timing of moves in the three-stage game proves to be important for obtaining the above qualitative results under decentralized unionization.
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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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