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Impact of labour unions on the merger incentive of firms

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  • Hyung Bae

Abstract

This paper analyses the impact of labour unions on the merger incentives of firms. We find that a horizontal merger takes place if there is some synergy effect. However, a vertical merger takes place only if the synergy effect is bigger than a certain size.

Suggested Citation

  • Hyung Bae, 2005. "Impact of labour unions on the merger incentive of firms," International Economic Journal, Taylor & Francis Journals, vol. 19(1), pages 91-94.
    • Handle: RePEc:taf:intecj:v:19:y:2005:i:1:p:91-94
    DOI: 10.1080/1351161042000320407
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    References listed on IDEAS

    as
    1. Horn, Henrik & Wolinsky, Asher, 1988. "Worker Substitutability and Patterns of Unionisation," Economic Journal, Royal Economic Society, vol. 98(391), pages 484-497, June.
    2. Davidson, Carl, 1988. "Multiunit Bargaining in Oligopolistic Industries," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 397-422, July.
    3. Henrick Horn & Asher Wolinsky, 1988. "Bilateral Monopolies and Incentives for Merger," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 408-419, Autumn.
    4. Byoung Heon Jun, 1989. "Non-cooperative Bargaining and Union Formation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(1), pages 59-76.
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