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The implications of labour unions in the presence of a merger

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  • Jiyun Cao
  • Arijit Mukherjee
  • Uday Bhanu Sinha

Abstract

It is usually believed that the presence of labour unions is detrimental for the consumers since it raises wages. We show that this view may not be true if we endogenize the impacts of labour unions on firms’ corporate strategies such as merger and acquisition. The presence of labour unions may benefit the consumers by deterring merger.

Suggested Citation

  • Jiyun Cao & Arijit Mukherjee & Uday Bhanu Sinha, 2020. "The implications of labour unions in the presence of a merger," Manchester School, University of Manchester, vol. 88(4), pages 575-583, July.
    • Handle: RePEc:bla:manchs:v:88:y:2020:i:4:p:575-583
    DOI: 10.1111/manc.12306
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    References listed on IDEAS

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    9. Lommerud, Kjell Erik & Straume, Odd Rune & Sorgard, Lars, 2005. "Downstream merger with upstream market power," European Economic Review, Elsevier, vol. 49(3), pages 717-743, April.
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