Union Formation and Bargaining Rules in the Labor Market
This paper analyzes union formation in a model of bargaining between a firm and several unions. We address two questions: first, the optimal configuration of unions (their number and size) and, second, the impact of the bargaining pattern (simultaneous or sequential). For workers, grouping into several unions works as a price discrimination device which, at the same time, decreases their market power. The analysis shows that optimal union configuration depends on the rules that regulate the bargaining process (monopoly union, Nash bargaining or right to manage).
|Date of creation:||Mar 2005|
|Date of revision:|
|Contact details of provider:|| Postal: Avenida Lehendakari Aguirre, 83, 48015 Bilbao|
Web page: http://www.dfaeii.ehu.es
More information through EDIRC
|Order Information:|| Postal: Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain|
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.:
- Maria Paz Espinosa & Changyong Rhee, 1989. "Efficient Wage Bargaining as a Repeated Game," The Quarterly Journal of Economics, Oxford University Press, vol. 104(3), pages 565-588.
- 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.
- Mari Paz Espinosa & Inez Macho-Stadler, 2000.
"Endogenous Formation of Partnership with Moral Hazard,"
Econometric Society World Congress 2000 Contributed Papers
0565, Econometric Society.
- Paz Espinosa, Maria & Macho-Stadler, Ines, 2003. "Endogenous formation of competing partnerships with moral hazard," Games and Economic Behavior, Elsevier, vol. 44(1), pages 183-194, July.
- Espinosa Alejos, María Paz & Macho Stadler, Inés, 2002. "Endogenous Formation of Competing Partnership with Moral Hazard," DFAEII Working Papers 2002-34, University of the Basque Country - Department of Foundations of Economic Analysis II.
- Mar? Paz Espinosa & Inés Macho-Stadler, . "Endogenous Formation Of Partnerships With Moral Hazard," UFAE and IAE Working Papers 448.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Barrett, C. R. & Pattanaik, Prasanta K., 1989. "Bargaining over employment and wages, with threats of strikes and lockouts : An extension of the Nash solution," European Journal of Political Economy, Elsevier, vol. 5(2-3), pages 333-345.
- Bughin, Jacques, 1999. "The strategic choice of union-oligopoly bargaining agenda," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 1029-1040, October.
- Robert A. Hart & Thomas Moutos, 1990.
"Efficient Bargains in the Context of Recent Labour Market Experience and Policy,"
Upjohn Working Papers and Journal Articles
90-03, W.E. Upjohn Institute for Employment Research.
- Hart, Robert A. & Moutos, Thomas, 1991. "Efficient bargains in the context of recent labour market experience and policy," European Journal of Political Economy, Elsevier, vol. 7(2), pages 169-181, July.
- Robert A Hart & Thomas Moutos, 1990. "Efficient Bargains in the Context of Recent Labour Market Experience and Policy," Working Papers Series 90/7, University of Stirling, Division of Economics.
- Kiander, Jaakko & Kilponen, Juha & Vilmunen, Jouko, 2004. "Labor taxation, public finance, and wage determination: evidence from OECD countries," European Journal of Political Economy, Elsevier, vol. 20(4), pages 983-999, November.
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
661465000000000387, David K. Levine.
- Banerji, A., 2002. "Sequencing strategically: wage negotiations under oligopoly," International Journal of Industrial Organization, Elsevier, vol. 20(7), pages 1037-1058, September.
- Carraro, Carlo & Siniscalco, Domenico, 1998. "International Institutions and Environmental Policy: International environmental agreements: Incentives and political economy1," European Economic Review, Elsevier, vol. 42(3-5), pages 561-572, May.
- Askildsen, Jan Erik & Nilsen, Oivind Anti, 2002. "Union membership and wage formation," European Journal of Political Economy, Elsevier, vol. 18(2), pages 345-363, June.
- Manning, Alan, 1987. "Collective bargaining institutions and efficiency : An application of a sequential bargaining model," European Economic Review, Elsevier, vol. 31(1-2), pages 168-176.
- Horn, Henrik & Wolinsky, Asher, 1988. "Worker Substitutability and Patterns of Unionisation," Economic Journal, Royal Economic Society, vol. 98(391), pages 484-97, June.
- Joop Hartog & Edwin Leuven & Coen N. Teulings, 2000.
"Wages and the Bargaining Regime in a Corporist Setting: The Netherlands,"
Tinbergen Institute Discussion Papers
00-013/3, Tinbergen Institute.
- Hartog, Joop & Leuven, Edwin & Teulings, Coen, 2002. "Wages and the bargaining regime in a corporatist setting: the Netherlands," European Journal of Political Economy, Elsevier, vol. 18(2), pages 317-331, June.
- Hartog, Joop & Leuven, Edwin & Teulings, Coen N, 1997. "Wages and the Bargaining Regime in a Corporatist Setting: The Netherlands," CEPR Discussion Papers 1706, C.E.P.R. Discussion Papers.
- De la Rica, Sara & Espinosa, Maria Paz, 1997.
"Testing Employment Determination in Unionised Economies as a Repeated Game,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 44(2), pages 134-52, May.
- De la Rica, S. & Espinosa, M.P., 1996. "Testing Employment determination in Unionised Economices as a Repeated Gam e," ASSET - Instituto De Economia Publica 157, ASSET (Association of Southern European Economic Theorists).
- Strand, Jon, 1989. "Monopoly unions versus efficient bargaining : A repeated game approach," European Journal of Political Economy, Elsevier, vol. 5(4), pages 473-486.
- Naylor, Robin & Cripps, Martin, 1993.
"An economic theory of the open shop trade union,"
European Economic Review,
Elsevier, vol. 37(8), pages 1599-1620, December.
- Naylor, R. & Cripps, M., 1991. "An Economic Theory of the Open Shop Trade Union," The Warwick Economics Research Paper Series (TWERPS) 372, University of Warwick, Department of Economics.
- Brown, James N & Ashenfelter, Orley, 1986. "Testing the Efficiency of Employment Contracts," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S40-S87, June.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Strand, Jon, 2003. "The decline or expansion of unions: a bargaining model with heterogeneous labor," European Journal of Political Economy, Elsevier, vol. 19(2), pages 317-340, June.
- Naylor, Robin A, 1995. " On the Economic Effects of Multiple Unionism," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(1), pages 161-67, March.
- MaCurdy, Thomas E & Pencavel, John H, 1986. "Testing between Competing Models of Wage and Employment Determination in Unionized Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S3-S39, June.
- Byoung Heon Jun, 1989. "Non-cooperative Bargaining and Union Formation," Review of Economic Studies, Oxford University Press, vol. 56(1), pages 59-76.
- Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, vol. 97(385), pages 121-39, March.
- Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 160-93.
- Aronsson, Thomas & Lofgren, Karl-Gustaf & Wikstrom, Magnus, 1993. "Monopoly union versus efficient bargaining : Wage and employment determination in the Swedish construction sector," European Journal of Political Economy, Elsevier, vol. 9(3), pages 357-370, August.
- Lofgren, Karl-Gustaf, 1993. "Monopoly union wage setting, devaluation risk, and decentralized versus centralized bargaining," European Journal of Political Economy, Elsevier, vol. 9(1), pages 113-124, March.
When requesting a correction, please mention this item's handle: RePEc:ehu:dfaeii:200507. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alcira Macías Redondo)
If references are entirely missing, you can add them using this form.