Spatial Cournot competition and timing of endogenous wage setting
AbstractThis paper studies the problem of location-quantity choice in a duopoly in which the wage paid by each firm is set by the corresponding monopoly union. Compared with the outcome obtained in location-price choice game, we find that the wage setting choice for both unions does not change in our model, they still choose to set wage sequentially. The equilibrium locations are not influenced by the timing of wage setting.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 29 (2009)
Issue (Month): 3 ()
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endogenous product costs spatial competition Cournot model location choice;
Find related papers by JEL classification:
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
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