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Unionized Oligopoly and Trade Liberalization

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Abstract

The authors analyze various forms of trade liberalization in a three-country model with unions. Oligopolistic firms in two countries face unionized workers, while an oligopolistic firm in the third country faces a competitive labor market. The general result is that a country with a union benefits from trade liberalization with a country that also has a unionized work force, while liberalization of trade between a country with a union and a country with a competitive labor market always makes the country with a union worse off.

Suggested Citation

  • T. Fisher & D. Wright, 1999. "Unionized Oligopoly and Trade Liberalization," Canadian Journal of Economics, Canadian Economics Association, vol. 32(3), pages 799-816, May.
    • Handle: RePEc:cje:issued:v:32:y:1999:i:3:p:799-816
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    Cited by:

    1. Nicole Gürtzgen, 2002. "Trade Liberalization and Union Wages in a Differentiated Bertrand Duopoly," Open Economies Review, Springer, vol. 13(2), pages 133-151, April.
    2. Worku Gebeyehu, 2017. "Trade Reforms, Mark-Ups and Bargaining Power of Workers: the Case of Ethiopian Manufacturing Firms," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 25(1), March.
    3. Michele SANTONI, 2009. "Does product market integration lead to decentralised wage bargaining institutions?," Departmental Working Papers 2009-43, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Santoni, Michele, 2014. "Product market integration and wage bargaining institutions," Labour Economics, Elsevier, vol. 27(C), pages 1-15.
    5. Straume, Odd Rune, 2003. "International mergers and trade liberalisation: implications for unionised labour," International Journal of Industrial Organization, Elsevier, vol. 21(5), pages 717-735, May.
    6. Henry Thompson, 2016. "Tariffs and Wages in Trade Theory," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 399-405, May.
    7. Thompson, Alexi & Thompson, Henry, 2021. "The imputed effect of US tariffs on wages," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 191-197.
    8. Domenico Buccella, 2011. "Labor unions and economic integration: A review," Económica, Instituto de Investigaciones Económicas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 25-89, January-D.

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