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Multi-union bargaining: Tariff plurality and tariff competition

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  • Aghadadashli, Hamid
  • Wey, Christian

Abstract

We study sequential bargaining between two unions and a single firm. Parties bargain bilaterally and efficiently (over wage and employment). The unions' workforces can be substitutable (tariff competition) or complementary (tariff plurality or craft unionism). If unions are substitutable, then too many workers from the first union are employed at the cost of employment from the second union (with overall overemployment). If unions are complementary, then employment of both unions is reduced (with overall underemployment). Unions merge when workers are substitutable but stay separate if complementary, so that the inefficiencies associated with craft unionism persist. --

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Paper provided by Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE) in its series DICE Discussion Papers with number 138.

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Date of creation: 2014
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Handle: RePEc:zbw:dicedp:138

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  6. Stéphane Caprice & Vanessa Schlippenbach, 2013. "One-Stop Shopping as a Cause of Slotting Fees: A Rent-Shifting Mechanism," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(3), pages 468-487, 09.
  7. Haucap, Justus, 2012. "Tarifeinheit nicht durch Gesetz verankern," DICE Ordnungspolitische Perspektiven 25, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  8. Horn, H. & Wolinsky, A., 1988. "Bilateral Monopolies And Incentives For Merger," Papers 410, Stockholm - International Economic Studies.
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  11. Inderst, Roman & Wey, Christian, 2003. " Bargaining, Mergers, and Technology Choice in Bilaterally Oligopolistic Industries," RAND Journal of Economics, The RAND Corporation, vol. 34(1), pages 1-19, Spring.
  12. Horn, Henrik & Wolinsky, Asher, 1988. "Worker Substitutability and Patterns of Unionisation," Economic Journal, Royal Economic Society, vol. 98(391), pages 484-97, June.
  13. Petrakis, Emmanuel & Vlassis, Minas, 2000. "Endogenous scope of bargaining in a union-oligopoly model: when will firms and unions bargain over employment?," Labour Economics, Elsevier, vol. 7(3), pages 261-281, May.
  14. Ronald Bachmann & Christoph M. Schmidt, 2012. "Im Zweifel für die Freiheit: Tarifpluralität ohne Chaos," RWI Positionen, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 10, 06.
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