Union-Oligopoly Sequential Bargaining: Trade and Industrial Policies
AbstractThis paper considers the efficacy and the desirability of home government tariff and subsidy policies when labour market structure and asymmetries in the firms' size matter. In a Cournot-Nash duopolistic sector, a unionized home-firm competes against a non-unionized foreign firm. The home firm-union choose wages and employment in a two-stage Nash bargaining game. The second stage corresponds to the Cournot-Nash game with the foreign firm. Firms may play in strategic substitutes or complements. As the home bargainers recognize that market shares are determined by relative marginal costs, they may use the wage stage strategically. Home government policy choices critically depend upon the bargaining structure and general equilibrium spillovers. Copyright 1996 by Royal Economic Society.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 48 (1996)
Issue (Month): 4 (October)
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Other versions of this item:
- Michele Santoni, . "Union-Oligopoly Sequential Bargaining: Trade and Industrial Policies," Discussion Papers 94/24, Department of Economics, University of York.
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