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Endogenous Unions Formation

  • Chica Páez, Yolanda
  • Espinosa Alejos, María Paz

This paper analyzes the process of endogenous union formation in the context of a sequential bargaining model between a firm and several unions and tries to explain why workers may be represented by several unions of different sizes. We show that the equilibrium number of unions and their relative size depend on workers' attitudes toward the risk of unemployment and union configuration is independent of labor productivity.

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Paper provided by University of the Basque Country - Department of Foundations of Economic Analysis II in its series DFAEII Working Papers with number 2009-.07.

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Date of creation: Dec 2009
Date of revision:
Handle: RePEc:ehu:dfaeii:2009.07
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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

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  1. 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.
  2. 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.
  3. Chica Páez, Yolanda & Espinosa Alejos, María Paz, 2005. "Union Formation and Bargaining Rules in the Labor Market," DFAEII Working Papers 2005-07, University of the Basque Country - Department of Foundations of Economic Analysis II.
  4. 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.
  5. repec:tpr:qjecon:v:104:y:1989:i:3:p:565-88 is not listed on IDEAS
  6. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, June.
  7. 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.
  8. repec:tpr:qjecon:v:98:y:1983:i:2:p:185-99 is not listed on IDEAS
  9. Horn, Henrik & Wolinsky, Asher, 1988. "Worker Substitutability and Patterns of Unionisation," Economic Journal, Royal Economic Society, vol. 98(391), pages 484-97, June.
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