Unions’ Bargaining Coordination in Multinational Enterprises
AbstractThis paper investigates the coordination of bargaining activities among labor unions in a Multinational Enterprise (MNE) with plants in different countries. Making use of a threestage game where the parties sequentially decide whether o coordinate negotiations, it derives the bargaining regimes arising as sub-game perfect equilibria. In presence of workers perfect substitutes in production and symmetry in the plants’ efficiency, it is shown that unions’ transaction costs may attenuate the conflict of interests among the parties as regards the level of coordination at which negotiations should take place.
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Bibliographic InfoPaper provided by FIW in its series FIW Working Paper series with number 061.
Date of creation: Jun 2011
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Find related papers by JEL classification:
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- D60 - Microeconomics - - Welfare Economics - - - General
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