Wage bargaining and vertical differentiation
This article intends to apply the Nash Bargaining solution to wage setting in a vertically differentiated oligopoly and to study its welfare effects. The market outcome crucially depends on the bargaining power attributed to the agents. I show that the resulting wage bargaining structure is likely to lead to another source of distortion that adds to the classical one derived by oligopoly pricing and quality choice.
(This abstract was borrowed from another version of this item.)
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.
Volume (Year): 54 (2007)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.springer.com|
Web page: http://www.heirs.it/
|Order Information:||Web: http://www.springer.com/economics/policy/journal/12232/PS2|
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.:
- Brander, James A. & Spencer, Barbara J., 1988. "Unionized oligopoly and international trade policy," Journal of International Economics, Elsevier, vol. 24(3-4), pages 217-234, May.
- Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 551-575.
- Enrico Pennings, 2004.
"Optimal Pricing And Quality Choice When Investment In Quality Is Irreversible,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 52(4), pages 569-589, December.
- Enrico Pennings, "undated". "Optimal pricing and quality choice when investment in quality is irreversible," Working Papers 206, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Webster, Allan, 1993. "The Skill and Higher Educational Content of UK Net Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(2), pages 141-159, May.
- Dhillon, Amrita & Petrakis, Emmanuel, 2002. "A generalised wage rigidity result," International Journal of Industrial Organization, Elsevier, vol. 20(3), pages 285-311, March.
- Jean Gabszewicz & Alessandro Turrini & Jean-Claude Berthlemy, 1999. "Workers' Skills and Product Selection," Revue Économique, Programme National Persée, vol. 50(3), pages 383-391.
- GABSZEWICZ, Jean & TURRINI, Alessandro, "undated". "Workers'skills and product selection," CORE Discussion Papers RP 1394, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- GABSZEWICZ, Jean & TURRINI, Alessandro, 1999. "Workers’skills and product selection," CORE Discussion Papers 1999006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thomson, William, 1994. "Cooperative models of bargaining," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 35, pages 1237-1284 Elsevier.
- Thomson, W., 1989. "Cooperative Models Of Bargaining," RCER Working Papers 177, University of Rochester - Center for Economic Research (RCER).
- Naylor, Robin, 1998. "International trade and economic integration when labour markets are generally unionised," European Economic Review, Elsevier, vol. 42(7), pages 1251-1267, July.
- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
- Coles, Melvyn G & Hildreth, Andrew, 1996. "Wage Bargaining, Inventories, and Union Legislation," CEPR Discussion Papers 1361, C.E.P.R. Discussion Papers.
- Aoki, Reiko & Prusa, Thomas J., 1997. "Sequential versus simultaneous choice with endogenous quality," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 103-121, February.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Dowrick, Steve, 1989. "Union-Oligopoly Bargaining," Economic Journal, Royal Economic Society, vol. 99(398), pages 1123-1142, December.
- Joan Martín-Montaner & Vicente Ríos, 2002. "Vertical specialization and intra-industry trade: The role of factor endowments," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(2), pages 340-365, June.
- BOCCARD, Nicolas & WAUTHY, Xavier, 2009. "Regulating quality by regulating quantity : a case against minimum quality standards," CORE Discussion Papers 2009052, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). Full references (including those not matched with items on IDEAS)