IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Unions and the Coordination Problem in an Integrated Economy

Listed author(s):
  • Domenico Buccella


    (University of Siena, Italy; University of Graz, Austria)

This work represents an extension of the model presented by Olivier Blanchard in occasion of the Lionel Robbins' Letures (2000) given M.I.T. It analyzes the transnational cooperative behavior of trade unions in a two symmetric country-model with monopolistic competition firms present in the two markets under the possibility to shift production (i.e. through an increase in investments). In the case of technological shocks, firms are able to capture the advantage in wage differentials between the two countries. The country facing the shock has a loss in employment. If transaction costs are present, unions face a classical Prisoner's Dilemma where the Nash equilibrium of the game is no cooperation, but this result is not Pareto-efficient.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.

Volume (Year): 7 (2007)
Issue (Month): 1 (July)
Pages: 19-33

in new window

Handle: RePEc:bic:journl:v:7:y:2007:i:1:p:19-33
Contact details of provider: Postal:
Strelnieku iela 4a, Riga, LV-1010

Phone: +371 67039320
Fax: +371 67039318
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bic:journl:v:7:y:2007:i:1:p:19-33. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lelde Jakobsone)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.