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Unions’ bargaining coordination in multinational enterprises

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  • Domenico Buccella

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Abstract

This paper investigates the patterns of bargaining in multinational enterprises (MNEs) in the presence of labor unions coordination activities. It derives the bargaining regimes which arise as sub-game perfect equilibria, and considers both simultaneous and sequential games where parties choose whether to coordinate wage negotiations across subsidiaries. It shows that unions’ per member transaction costs may attenuate the conflict of interests between bargaining parties as regards the centralization level at which negotiations should take place. Copyright The Author(s) 2013

Suggested Citation

  • Domenico Buccella, 2013. "Unions’ bargaining coordination in multinational enterprises," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(4), pages 373-392, November.
  • Handle: RePEc:spr:series:v:4:y:2013:i:4:p:373-392
    DOI: 10.1007/s13209-013-0097-z
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    References listed on IDEAS

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    1. Banerji, A., 2002. "Sequencing strategically: wage negotiations under oligopoly," International Journal of Industrial Organization, Elsevier, vol. 20(7), pages 1037-1058, September.
    2. Davidson, Carl, 1988. "Multiunit Bargaining in Oligopolistic Industries," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 397-422, July.
    3. Emmanuel Petrakis & Minas Vlassis, 2004. "Endogenous wage bargaining institutions in oligopolistic sectors," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(1), pages 55-73, July.
    4. Zhao, Laixun, 1995. "Cross-hauling direct foreign investment and unionized oligopoly," European Economic Review, Elsevier, vol. 39(6), pages 1237-1253, June.
    5. Domenico Buccella, 2013. "Unions' bargaining coordination in multi-unit firms," Economics Bulletin, AccessEcon, vol. 33(1), pages 217-225.
    6. Henrick Horn & Asher Wolinsky, 1988. "Bilateral Monopolies and Incentives for Merger," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 408-419, Autumn.
    7. 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.
    8. Arijit Mukherjee, 2010. "Product Market Cooperation, Profits and Welfare in the Presence of Labor Union," Journal of Industry, Competition and Trade, Springer, vol. 10(2), pages 151-160, June.
    9. Michele Santoni, 2009. "Does product market integration lead to decentralised wage bargaining institutions?," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1091, Universitá degli Studi di Milano.
    10. BORGHIJS, Alain & DU CAJU, Philip, 1999. "EMU and European trade union cooperation," Working Papers 1999013, University of Antwerp, Faculty of Applied Economics.
    11. Barcena-Ruiz, Juan Carlos & Begona Garzon, Maria, 2002. "The Organisation of Wage Bargaining in Divisionalised Firms," Australian Economic Papers, Wiley Blackwell, vol. 41(3), pages 305-319, September.
    12. De Fraja, Giovanni, 1993. "Staggered vs. synchronised wage setting in oligopoly," European Economic Review, Elsevier, vol. 37(8), pages 1507-1522, December.
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    Cited by:

    1. Eckel, Carsten & Egger, Hartmut, 2012. "The Dilemma of Labor Unions: Local Objectives vs. Global Bargaining," CEPR Discussion Papers 8784, C.E.P.R. Discussion Papers.
    2. repec:bla:reviec:v:25:y:2017:i:3:p:534-566 is not listed on IDEAS

    More about this item

    Keywords

    Bargaining; Multinational enterprises; Labor unions; C78; F23; J51; D60;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • D60 - Microeconomics - - Welfare Economics - - - General

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