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Strike Behaviour When Market Share Matters

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  • Clark, Simon

Abstract

This paper analyzes the dynamics of strike incidence when a firm's market share affects its future profitability. Inventory accumulation is assumed to be impossible, so during a strike sales are zero, thereby reducing future demand. Anticipation of the future effects of a strike leads to lower wage settlements and a lower probability of disagreement. Thus strike incidence is reduced. Furthermore, a recent strike may make a further one less or more likely, depending on the union's reservation wage and the precise way that market share evolves. This may help to explain some conflicting empirical results. Copyright 1996 by Royal Economic Society.

Suggested Citation

  • Clark, Simon, 1996. "Strike Behaviour When Market Share Matters," Oxford Economic Papers, Oxford University Press, vol. 48(4), pages 618-639, October.
  • Handle: RePEc:oup:oxecpp:v:48:y:1996:i:4:p:618-39
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    Cited by:

    1. Antonio Nicita & Matteo Rizzolli, 2010. "The case for the virtual strike," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 9(1), pages 75-75, April.
    2. William H. Greene & Ana P. Martins, 2002. "Striking Features of the Labor Market," EERI Research Paper Series EERI RP 2002/08, Economics and Econometrics Research Institute (EERI), Brussels.
    3. William H. Greene & Ana P. Martins, 2013. "Striking Features of the Labor Market: Empirical Evidence," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(2), pages 25-53.
    4. Antonio Nicita & Matteo Rizzolli, 2009. "The Case for the Virtual Strike. An Appraisal of the Italian Proposal," Department of Economics University of Siena 557, Department of Economics, University of Siena.
    5. William H. Greene & Ana P. Martins, 2013. "Striking Features of the Labor Market: Theory," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(2), pages 1-24.

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