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Product market integration and endogenous bargaining structure

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Author Info

  • Santoni, Michele

    (University degli Studi di Milano)

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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Bibliographic 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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Related research

Keywords: Bargaining institutions; unionised oligopolies; trade integration;

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Cited by:
  1. Torben M. Andersen, 2003. "Wage formation and European integration," European Economy - Economic Papers 188, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.

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