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Unionized monopoly regulation: strategic trade vs. domestic competition policies

Author

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  • Domenico Buccella

    (Dipartimento di Economia Politica e Statistica, Università di Siena)

Abstract

This note analyzes the differences between strategic trade and domestic competition policies to regulate a unionized monopoly. In the presence of an industry-wide union, the entry of a domestic competitor does not reduce labor market distortions, while strategic trade policy reduces both labor and product markets distortions. The fixed cost for the domestic entrant and the foreign union sensitivity to employment determine which policy should be implemented to maximize national welfare.

Suggested Citation

  • Domenico Buccella, 2012. "Unionized monopoly regulation: strategic trade vs. domestic competition policies," Economics Bulletin, AccessEcon, vol. 32(1), pages 932-940.
    • Handle: RePEc:ebl:ecbull:eb-12-00208
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    References listed on IDEAS

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    1. Hylke Vandenbussche & Jozef Konings, 1998. "Globalisation and the Effects of National Versus International Competition on the Labour Market: Theory and Evidence from Belgian Firm Level Data," The World Economy, Wiley Blackwell, vol. 21(8), pages 1151-1177, November.
    2. Naylor, Robin, 1998. "International trade and economic integration when labour markets are generally unionised," European Economic Review, Elsevier, vol. 42(7), pages 1251-1267, July.
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    Cited by:

    1. Buccella Domenico, 2019. "Strategic trade and FDI policies in a unionized industry," Economics and Business Review, Sciendo, vol. 5(1), pages 12-31, March.

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    More about this item

    Keywords

    strategic trade policy; competition policy; unionized monopoly.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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