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Networks of knowledge among unionized firms

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  • Ana Mauleon
  • Jose J. Sempere-Monerris
  • Vincent Vannetelbosch

Abstract

We develop a model of strategic networks in order to analyze how trade unions will affect the stability of R&D networks through which knowledge is transmitted in an oligopolistic industry. Whenever firms settle wages, the partially connected network is likely to emerge in the long run if and only if knowledge spillovers are large enough. However, when unions settle wages, the complete network is the unique stable network. In other words, the stronger the union bargaining power is, the more symmetric stable R&D networks will be. In terms of network efficiency, the partially connected network (when firms settle wages) does not Pareto dominate the complete network (when unions settle wages) and vice versa.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 41 (2008)
Issue (Month): 3 (August)
Pages: 971-997

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Handle: RePEc:cje:issued:v:41:y:2008:i:3:p:971-997

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Cited by:
  1. MAULEON, Ana & SEMPERE MONERRIS, Jose J. & VANNETELBOSCH, Vincent J., . "Networks of manufacturers and retailers," CORE Discussion Papers RP -2291, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. CAULIER, Jean-François & MAULEON, Ana & SEMPERE-MONERRIS, José J. & VANNETELBOSCH, Vincent, 2011. "Stable and efficient coalitional networks," CORE Discussion Papers 2011039, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Vasileios Zikos, 2010. "R&D Collaboration Networks in Mixed Oligopoly," Southern Economic Journal, Southern Economic Association, vol. 77(1), pages 189-212, July.
  4. Kesavayuth, Dusanee & Zikos, Vasileios, 2012. "Upstream and downstream horizontal R&D networks," Economic Modelling, Elsevier, vol. 29(3), pages 742-750.

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