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Networks of knowledge among unionized firms

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  • MAULEON, Ana
  • SEMPERE-MONERRIS, José J.
  • VANNETELBOSCH, Vincent

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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File URL: http://dx.doi.org/10.1111/j.1540-5982.2008.00493.x
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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers RP with number -2055.

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Handle: RePEc:cor:louvrp:-2055

Note: In : Canadian Journal of Economics/Revue canadienne d'Economique, 41(3), 971-997, 2008
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Cited by:
  1. Ana, MAULEON & José, SEMPERE-MONERRIS & Vincent, VANNETELBOSCH, 2005. "Networks of Manufacturers and Retailers," Discussion Papers (ECON - Département des Sciences Economiques) 2005036, Université catholique de Louvain, Département des Sciences Economiques.
  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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