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Product market integration and endogenous bargaining structure


  • Santoni, Michele

    (University degli Studi di Milano)


This paper focuses on the effects of product market integration on wage-bargaining institutions in a one-way trade model of an international Cournot oligopoly. It shows that product market integration (i.e. a reduction in trade costs either from an arbitrary or from its optimal level) lowers the incentives to centralisation for home unions, given that firms always prefer decentralisation, making it more likely that a decentralised wage bargaining structure occurs in equilibrium.

Suggested Citation

  • Santoni, Michele, 2003. "Product market integration and endogenous bargaining structure," Royal Economic Society Annual Conference 2003 180, Royal Economic Society.
  • Handle: RePEc:ecj:ac2003:180

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    Cited by:

    1. Torben M. Andersen, 2003. "Wage formation and European integration," European Economy - Economic Papers 2008 - 2015 188, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

    More about this item


    Bargaining institutions; unionised oligopolies; trade integration;

    JEL classification:

    • F1 - International Economics - - Trade
    • 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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