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Unions and Entry to Traditional and Network Industries

Author

Listed:
  • Luciano Fanti

    (University of Pisa, Italy.)

  • Domenico Buccella

    (Kozminski University, Poland.)

Abstract

The paper analyses the effects of unionisation of the labour market under the Right-to-Manage (RTM), and Sequential Efficient Bargaining (SEB) institutions, on the entry of a firm, then comparing traditional and network industries. The findings show that under RTM unions always play a pro-competitive role, while under EB they may become a barrier to entry – under the form of the payment of a fee to obtain a monopoly grant by an authority - in network industries with intense network effects. These results shed light on the importance of the presence, on the one hand, of unions and different bargaining agendas and on other hand of network goods on the shape of industrial competition, with the evident anti-trust and competition policies implications.

Suggested Citation

  • Luciano Fanti & Domenico Buccella, 2020. "Unions and Entry to Traditional and Network Industries," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 52(1), pages 43-68, Enero-Jun.
    • Handle: RePEc:ety:journl:v:52:y:2020:i:1:p:43-68
    DOI: 10.24275/etypuam/ne/522020/Fanti
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    More about this item

    Keywords

    Sequential Efficient bargaining; Right-to-manage; Firm-union bargaining agenda; Entry; Network effects.;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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