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Union-Oligopoly Bargaining and Entry Deterrence:A Reassessment of Limit Pricing

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  • Rupayan Pal

Abstract

Wage bargaining is introduced in the framework of Milgrom and Roberts (1982, Econometrica: 50(2), p. 443-459) where the workers' reservation wage is the relevant information parameter critical for entry. The setup is identical to that of MR except that there is a labor union in the incumbent firm which bargains every period over the wage, before the price is set (the so called "right-to-manage bargaining"). [WP no. 14].

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  • Rupayan Pal, 2008. "Union-Oligopoly Bargaining and Entry Deterrence:A Reassessment of Limit Pricing," Working Papers id:1375, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:1375
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Rupayan Pal & Vinay Ramani, 2017. "Will a matchmaker invite her potential rival in?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(4), pages 806-819, December.
    2. Joaquín Andaluz, 2011. "Validity of the “Principle of Maximum Product Differentiation” in a unionized mixed-duopoly," Journal of Economics, Springer, vol. 102(2), pages 123-136, March.
    3. Fanti, Luciano & Gori, Luca, 2013. "Efficient bargaining versus right to manage: A stability analysis in a Cournot duopoly with trade unions," Economic Modelling, Elsevier, vol. 30(C), pages 205-211.
    4. Fanti, Luciano & Gori, Luca, 2011. "Stability analysis in a Cournot duopoly with managerial sales delegation and bounded rationality," MPRA Paper 33828, University Library of Munich, Germany.
    5. Pal, Rupayan & Rathore, Udayan, 2016. "Estimating workers’ bargaining power and firms’ markup in India: Implications of reforms and labour regulations," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1118-1135.
    6. Luciano Fanti & Nicola Meccheri, 2014. "Capacity choice and welfare under alternative unionisation structures," Discussion Papers 2014/176, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    7. Fanti, Luciano & Gori, Luca, 2011. "Stability in a Cournot duopoly under asymmetric unionism," MPRA Paper 33694, University Library of Munich, Germany.
    8. Fanti, Luciano & Gori, Luca, 2011. "Efficient bargaining versus right to manage: a stability analysis with heterogeneous players in a duopoly with quantity competition and trade unions," MPRA Paper 34434, University Library of Munich, Germany.
    9. Luciano Fanti & Nicola Meccheri, 2013. "Managerial Delegation under Alternative Unionization Structures," LABOUR, CEIS, vol. 27(1), pages 38-57, March.
    10. Dale-Olsen, Harald, 2018. "Wages, Creative Destruction, and Union Networks," IZA Discussion Papers 11894, Institute of Labor Economics (IZA).
    11. Rupayan Pal & Bibhas Saha, 2016. "Entry Threats and Inefficiency in ‘Efficient Bargaining’," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(3), pages 258-277, July.
    12. Wei Ding, 2015. "Decentralized union-oligopoly bargaining when wages signal strength," Journal of Economics, Springer, vol. 114(3), pages 239-254, April.
    13. Luciano Fanti & Domenico Buccella, 2016. "Bargaining Agenda and Entry in a Unionised Model with Network Effects," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 2(1), pages 91-121, March.
    14. Shih-Shen Chen & Po-Sheng Ko & Chien-Shu Tsai & Jen-Yao Lee, 2022. "Managerial Delegation and Conflicting Interest in Unionized Duopoly with Firm Heterogeneity," Mathematics, MDPI, vol. 10(22), pages 1-8, November.
    15. Rupayan Pal & Bibhas Saha, 2010. "Entry Threats, and Inefficiency in ‘Efficient Bargaining’," Labor Economics Working Papers 23020, East Asian Bureau of Economic Research.
    16. Luciano Fanti, 2011. "When do firms prefer either monopolistic unions or an efficient bargaining?," Discussion Papers 2011/130, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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    More about this item

    Keywords

    labor union; information parameter; Entry; Bargaining; signalling; Wage; Union-oligopoly; price; MR; equilibrium; pricing; labor; correlation; marginal cost; product markets.;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L49 - Industrial Organization - - Antitrust Issues and Policies - - - Other

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