IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2021y2021i5id1328p511-528.html
   My bibliography  Save this article

Optimal Share of Privatisation in a Public Monopoly with Unionised Workers

Author

Listed:
  • Luciano Fanti
  • Domenico Buccella

Abstract

In a monopoly industry with firm-union wage bargaining, we show that it is optimal to privatise a share of the public firm. The optimal privatisation share increases with the union's higher bargaining power and/or wage-orientation and, when the latter is large, full privatisation becomes socially optimal. Interestingly, the optimal privatisation share is the highest (lowest) when the government attributes a medium-low (low and high) weight to the workers' welfare, notably when the union's bargaining power and/or wage-orientation are sufficiently high. This may be counterintuitive because it implies that left-wing governments (with a weak and moderate union) tend to privatise more greatly.

Suggested Citation

  • Luciano Fanti & Domenico Buccella, 2021. "Optimal Share of Privatisation in a Public Monopoly with Unionised Workers," Politická ekonomie, Prague University of Economics and Business, vol. 2021(5), pages 511-528.
    • Handle: RePEc:prg:jnlpol:v:2021:y:2021:i:5:id:1328:p:511-528
    DOI: 10.18267/j.polek.1328
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1328.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1328.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.1328?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Optimal privatisation; unionised monopoly; right-to-manage bargaining;
    All these keywords.

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2021:y:2021:i:5:id:1328:p:511-528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.