Labor union bargaining and firm organizational structure
Bargaining sequences, though vital to the real-world business strategies, are often treated as exogenously given. We examine bargaining sequences in the setting where a downstream firm makes a merger decision with an upstream partner and faces a negotiation with a union. When the downstream firm's power in the wage bargaining is weak, separation results and the input price bargaining proceeds prior to the wage bargaining. When the downstream firm's power in both negotiations is relatively equal, firms opt for separation and both negotiations keep on simultaneously. When the downstream firm's power in the wage negotiation is strong, the firms merge.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lin, Y Joseph, 1988. "Oligopoly and Vertical Integration: Note," American Economic Review, American Economic Association, vol. 78(1), pages 251-54, March.
- Horn, H. & Wolinsky, A., 1988.
"Bilateral Monopolies And Incentives For Merger,"
410, Stockholm - International Economic Studies.
- Robert Marshall & Antonio Merlo, 1996.
220, Federal Reserve Bank of Minneapolis.
- Perotti, E.C. & Spier, K.E., 1991.
"Capital Structure As A Bargaining Tool: The Role Of Leverage In Contract Renegociation,"
Harvard Institute of Economic Research Working Papers
1548, Harvard - Institute of Economic Research.
- Perotti, Enrico C & Spier, Kathryn E, 1993. "Capital Structure as a Bargaining Tool: The Role of Leverage in Contract Renegotiation," American Economic Review, American Economic Association, vol. 83(5), pages 1131-41, December.
- Marx, Leslie M. & Shaffer, Greg, 2007. "Rent shifting and the order of negotiations," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1109-1125, October.
- Lawrence Mishel, 1986. "The structural determinants of union bargaining power," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 40(1), pages 90-104, October.
- Joseph J. Spengler, 1950. "Vertical Integration and Antitrust Policy," Journal of Political Economy, University of Chicago Press, vol. 58, pages 347.
- Hart, O. & Tirole, J., 1990. "Vertical Integration And Market Foreclosure," Working papers 548, Massachusetts Institute of Technology (MIT), Department of Economics.
- Inderst, Roman, 1998.
"Multi-Issue Bargaining with Endogenous Agenda,"
Sonderforschungsbereich 504 Publications
98-35, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- In, Younghwan & Serrano, Roberto, 2003.
"Agenda restrictions in multi-issue bargaining (II): unrestricted agendas,"
Elsevier, vol. 79(3), pages 325-331, June.
- Younghwan In & Roberto Serrano, 2002. "Agenda Restrictions in Multi-Issue Bargaining (II): Unrestricted Agendas," Departmental Working Papers wp0206, National University of Singapore, Department of Economics.
- Waterson, Michael, 1982. "Vertical Integration, Variable Proportions and Oligopoly," Economic Journal, Royal Economic Society, vol. 92(365), pages 129-44, March.
- Jun, Byoung Heon, 1989. "Non-cooperative Bargaining and Union Formation," Review of Economic Studies, Wiley Blackwell, vol. 56(1), pages 59-76, January.
- Noe, Thomas H & Wang, Jun, 2000. "Strategic Debt Restructuring," Review of Financial Studies, Society for Financial Studies, vol. 13(4), pages 985-1015.
- Maria Bas & Juan Carluccio, 2009.
"Wage Bargaining and the Boundaries of the Multinational Firm,"
CEP Discussion Papers
dp0963, Centre for Economic Performance, LSE.
- Bas, Maria & Carluccio, Juan, 2010. "Wage Bargaining and the Boundaries of the Multinational Firm," CEPR Discussion Papers 7867, C.E.P.R. Discussion Papers.
- Maria Bas & Juan Carluccio, 2010. "Wage Bargaining and the Boundaries of the Multinational Firm," Working Papers 2010-03, CEPII research center.
- Maria Bas & Juan Carluccio, 2009. "Wage bargaining and the boundaries of the multinational firm," LSE Research Online Documents on Economics 28700, London School of Economics and Political Science, LSE Library.
- Raskovich, Alexander, 2007. "Ordered bargaining," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1126-1143, October.
- Silvana Krasteva & Huseyin Yildirim, 2012. "Payoff uncertainty, bargaining power, and the strategic sequencing of bilateral negotiations," RAND Journal of Economics, RAND Corporation, vol. 43(3), pages 514-536, 09.
- Greenhut, M L & Ohta, H, 1979. "Vertical Integration of Successive Oligopolists," American Economic Review, American Economic Association, vol. 69(1), pages 137-41, March.
- Stenbacka, Rune & Tombak, Mihkel, 2012. "Make and buy: Balancing bargaining power," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 391-402.
- 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.
- Holmstrom, Bengt & Tirole, Jean, 1991. "Transfer Pricing and Organizational Form," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(2), pages 201-28, Fall.
- Charles E. Hyde & Chongwoo Choe, 2005. "Keeping Two Sets of Books: The Relationship Between Tax and Incentive Transfer Prices," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(1), pages 165-186, 03.
- Pemberton, James, 1988. "A 'Managerial' Model of the Trade Union," Economic Journal, Royal Economic Society, vol. 98(392), pages 755-71, September.
- Fershtman, Chaim, 1990.
"The importance of the agenda in bargaining,"
Games and Economic Behavior,
Elsevier, vol. 2(3), pages 224-238, September.
- Sebastian Braun & Juliane Scheffel, 2007. "Does International Outsourcing Depress Union Wages?," SFB 649 Discussion Papers SFB649DP2007-033, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Horn, Henrik & Wolinsky, Asher, 1988. "Worker Substitutability and Patterns of Unionisation," Economic Journal, Royal Economic Society, vol. 98(391), pages 484-97, June.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:24:y:2013:i:c:p:116-124. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.