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Unions’ bargaining coordination in multinational enterprises

  • Domenico Buccella

    ()

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

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File URL: http://hdl.handle.net/10.1007/s13209-013-0097-z
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Article provided by Spanish Economic Association in its journal SERIEs.

Volume (Year): 4 (2013)
Issue (Month): 4 (November)
Pages: 373-392

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Handle: RePEc:spr:series:v:4:y:2013:i:4:p:373-392
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  1. Michele SANTONI, 2009. "Does product market integration lead to decentralised wage bargaining institutions?," Departmental Working Papers 2009-43, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  2. De Fraja, Giovanni, 1993. "Staggered vs. synchronised wage setting in oligopoly," European Economic Review, Elsevier, vol. 37(8), pages 1507-1522, December.
  3. Zhao, Laixun, 1995. "Cross-hauling direct foreign investment and unionized oligopoly," European Economic Review, Elsevier, vol. 39(6), pages 1237-1253, June.
  4. BORGHIJS, Alain & DU CAJU, Philip, 1999. "EMU and European trade union cooperation," Working Papers 1999013, University of Antwerp, Faculty of Applied Economics.
  5. Emmanuel Petrakis & Minas Vlassis, . "Endogenous Wage-Bargaining Institutions in Oligopolistic Sectors," Working Papers 0105, University of Crete, Department of Economics, revised 00 Dec 2001.
  6. 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 305-19, September.
  7. Domenico Buccella, 2013. "Unions' bargaining coordination in multi-unit firms," Economics Bulletin, AccessEcon, vol. 33(1), pages 217-225.
  8. Horn, H. & Wolinsky, A., 1988. "Bilateral Monopolies And Incentives For Merger," Papers 410, Stockholm - International Economic Studies.
  9. Banerji, A., 2002. "Sequencing strategically: wage negotiations under oligopoly," International Journal of Industrial Organization, Elsevier, vol. 20(7), pages 1037-1058, September.
  10. 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.
  11. 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.
  12. Davidson, Carl, 1988. "Multiunit Bargaining in Oligopolistic Industries," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 397-422, July.
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