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Unionization and International Market Share Rivalry: A Paradox

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Author Info
Bandyopadhyay, Subhayu
Bandyopadhyay, Sudeshna Champati

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Abstract

Two exporting firms (domestic and foreign) are considered which are symmetric in all respects except that one is unionized while the other faces a competitive labor market. Under free trade the unionized firm has the lower market share. Paradoxically, in the policy equilibrium, the unionized firm has the larger market share. Consequently, the nation hosting the unionized firm has the higher welfare level. Copyright 1999 by Blackwell Publishing Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 7 (1999)
Issue (Month): 1 (February)
Pages: 153-61
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Handle: RePEc:bla:reviec:v:7:y:1999:i:1:p:153-61

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  1. Subhayu Bandyopadhyay, Sudeshna C. Bandyopadhyay, 2001. "Efficient bargaining, welfare and strategic export policy," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 10(2), pages 133-149, June. [Downloadable!] (restricted)
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