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Unionized duopoly, market competition with differentiated products, and welfare

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  • Domenico Buccella

Abstract

Conventional wisdom associates high social welfare levels with more competitive product markets. Adopting a conjectural variation model in a unionized duopoly with differentiated products and right-to-manage bargaining, the present work finds that the impact of market competition on social welfare crucially depends on the degree of differentiation and the union’s disagreement utility. Copyright Associazione Amici di Economia e Politica Industriale 2015

Suggested Citation

  • Domenico Buccella, 2015. "Unionized duopoly, market competition with differentiated products, and welfare," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 455-473, December.
    • Handle: RePEc:spr:epolin:v:42:y:2015:i:4:p:455-473
    DOI: 10.1007/s40812-015-0018-1
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    References listed on IDEAS

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    Cited by:

    1. Domenico Buccella & Luciano Fanti, 2022. "Downstream competition and profits under different input price bargaining structures," Journal of Economics, Springer, vol. 136(3), pages 251-268, August.
    2. Buccella Domenico & Fanti Luciano, 2019. "Profits Under Centralized Negotiations: The Efficient Bargaining Case," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 19(2), pages 1-8, June.
    3. Domenico Buccella & Leonard F. S. Wang, 2021. "Union negotiations, product market cooperation, and profits," Metroeconomica, Wiley Blackwell, vol. 72(1), pages 82-100, February.

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    More about this item

    Keywords

    Bargaining; Conjectural variation; Unionized oligopoly; Social welfare; D43; J51; L13;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • 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

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