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Unions' bargaining coordination in multi-unit firms

Author

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  • Domenico Buccella

    () (Department of Economics, Kozminski University, Warsaw)

Abstract

This paper investigates the patterns of bargaining in a multi-unit firm in the presence of labor unions coordination activities. It derives the bargaining regimes arising as sub-game perfect equilibria, considering both simultaneous and sequential games where parties choose whether to coordinate wage negotiations. It shows that unions' coordination costs may attenuate the conflict of interests between bargaining parties as regards the centralization level at which negotiations should take place.

Suggested Citation

  • Domenico Buccella, 2013. "Unions' bargaining coordination in multi-unit firms," Economics Bulletin, AccessEcon, vol. 33(1), pages 217-225.
  • Handle: RePEc:ebl:ecbull:eb-12-00690
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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I1-P21.pdf
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    References listed on IDEAS

    as
    1. Dobson, Paul W., 1994. "Multifirm unions and the incentive to adopt pattern bargaining in oligopoly," European Economic Review, Elsevier, vol. 38(1), pages 87-100, January.
    2. Arijit Mukherjee, 2010. "Product Market Cooperation, Profits and Welfare in the Presence of Labor Union," Journal of Industry, Competition and Trade, Springer, vol. 10(2), pages 151-160, June.
    3. Banerji, A., 2002. "Sequencing strategically: wage negotiations under oligopoly," International Journal of Industrial Organization, Elsevier, vol. 20(7), pages 1037-1058, September.
    4. Michele Santoni, 2009. "Does product market integration lead to decentralised wage bargaining institutions?," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1091, Universitá degli Studi di Milano.
    5. Davidson, Carl, 1988. "Multiunit Bargaining in Oligopolistic Industries," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 397-422, July.
    6. Emmanuel Petrakis & Minas Vlassis, 2004. "Endogenous wage bargaining institutions in oligopolistic sectors," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(1), pages 55-73, July.
    7. BORGHIJS, Alain & DU CAJU, Philip, 1999. "EMU and European trade union cooperation," Working Papers 1999013, University of Antwerp, Faculty of Applied Economics.
    8. Henrick Horn & Asher Wolinsky, 1988. "Bilateral Monopolies and Incentives for Merger," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 408-419, Autumn.
    9. Barcena-Ruiz, Juan Carlos & Begona Garzon, Maria, 2002. "The Organisation of Wage Bargaining in Divisionalised Firms," Australian Economic Papers, Wiley Blackwell, vol. 41(3), pages 305-319, September.
    10. De Fraja, Giovanni, 1993. "Staggered vs. synchronised wage setting in oligopoly," European Economic Review, Elsevier, vol. 37(8), pages 1507-1522, December.
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    Citations

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    Cited by:

    1. Domenico Buccella, 2013. "Unions’ bargaining coordination in multinational enterprises," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(4), pages 373-392, November.

    More about this item

    Keywords

    bargaining; multi-unit firm; labor unions.;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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