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Networks of knowledge among unionized firms

Author

Listed:
  • Ana Mauleon
  • Jose J. Sempere-Monerris
  • Vincent Vannetelbosch

Abstract

We develop a model of strategic networks in order to analyze how trade unions will affect the stability of R&D networks through which knowledge is transmitted in an oligopolistic industry. Whenever firms settle wages, the partially connected network is likely to emerge in the long run if and only if knowledge spillovers are large enough. However, when unions settle wages, the complete network is the unique stable network. In other words, the stronger the union bargaining power is, the more symmetric stable R&D networks will be. In terms of network efficiency, the partially connected network (when firms settle wages) does not Pareto dominate the complete network (when unions settle wages) and vice versa.

Suggested Citation

  • Ana Mauleon & Jose J. Sempere-Monerris & Vincent Vannetelbosch, 2008. "Networks of knowledge among unionized firms," Canadian Journal of Economics, Canadian Economics Association, vol. 41(3), pages 971-997, August.
    • Handle: RePEc:cje:issued:v:41:y:2008:i:3:p:971-997
    DOI: 10.1111/j.1540-5982.2008.00493.x
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    References listed on IDEAS

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    Cited by:

    1. Mauleon, Ana & Sempere-Monerris, Jose J. & Vannetelbosch, Vincent, 2014. "Farsighted R&D networks," Economics Letters, Elsevier, vol. 125(3), pages 340-342.
      • MAULEON, Ana & SEMPERE-MONNERIS, Jose & VANNETELBOSCH, Vincent, 2014. "Farsighted R&D networks," LIDAM Reprints CORE 2653, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
      • MAULEON, Ana & SEMPERE-MONERRIS, Jose J & VANNETELBOSCH, Vincent, 2014. "Farsighted R&D networks," LIDAM Reprints CORE 2632, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Mauleon, Ana & Sempere-Monerris, Jose J. & Vannetelbosch, Vincent, 2023. "R&D network formation with myopic and farsighted firms," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 203-229.
    3. Jean-François Caulier & Ana Mauleon & Jose Sempere-Monerris & Vincent Vannetelbosch, 2013. "Stable and efficient coalitional networks," Review of Economic Design, Springer;Society for Economic Design, vol. 17(4), pages 249-271, December.
    4. Vasileios Zikos, 2010. "R&D Collaboration Networks in Mixed Oligopoly," Southern Economic Journal, John Wiley & Sons, vol. 77(1), pages 189-212, July.
    5. Ana Mauleon & Jose J. Sempere-Monerris & Vincent Vannetelbosch, 2023. "Limited Farsightedness in R &D Network Formation," Dynamic Games and Applications, Springer, vol. 13(2), pages 549-565, June.
    6. Ben Ferrett & Vasileios Zikos, 2013. "Wage-Setting Institutions and R&D Collaboration Networks," Australian Economic Papers, Wiley Blackwell, vol. 52(2), pages 61-78, June.
    7. Lorenzo Zirulia, 2012. "The role of spillovers in R&D network formation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(1), pages 83-105, November.
    8. Dollinger, Jérôme & Mauleon, Ana & Vannetelbosch, Vincent, 2023. "R&D and Market Sharing Agreements," LIDAM Discussion Papers CORE 2023004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Mauleon, Ana & Sempere-Monerris, Jose J. & Vannetelbosch, Vincent J., 2011. "Networks of manufacturers and retailers," Journal of Economic Behavior & Organization, Elsevier, vol. 77(3), pages 351-367, March.
    10. Kesavayuth, Dusanee & Zikos, Vasileios, 2012. "Upstream and downstream horizontal R&D networks," Economic Modelling, Elsevier, vol. 29(3), pages 742-750.

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    More about this item

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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