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Product market integration and endogenous bargaining structure

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Author Info
Santoni, Michele (University degli Studi di Milano)

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Abstract

This paper focuses on the effects of product market integration on wage-bargaining institutions in a one-way trade model of an international Cournot oligopoly. It shows that product market integration (i.e. a reduction in trade costs either from an arbitrary or from its optimal level) lowers the incentives to centralisation for home unions, given that firms always prefer decentralisation, making it more likely that a decentralised wage bargaining structure occurs in equilibrium.

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File URL: http://repec.org/res2003/Santoni.pdf
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Publisher Info
Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 180.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:180

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Web page: http://www.res.org.uk/society/annualconf.asp
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Related research
Keywords: Bargaining institutions; unionised oligopolies; trade integration;

Find related papers by JEL classification:
F1 - International Economics - - Trade
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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This page was last updated on 2009-11-25.


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