Individually-Relational Union Membership
The analysis of the determination of union membership has typically met difficulties with the fact that union membership is not individually rational and free-riding is the dominant strategy. We assume that workers differ in their reservation wages and hence in their preferred choice of contract, so preventing free-riding on the contract choice of others. This implies that joining a union is equivalent to buying a vote on the contract and provides an individual incentive to join the union. An equilibrium trade union membership is characterized in which membership is taken up by those with relatively "extreme" tastes. The union achieves a centralist objective even though no member precisely supports such a view.
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|Date of creation:||2000|
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- Robin Naylor, 1989. "Strikes, Free Riders, and Social Customs," The Quarterly Journal of Economics, Oxford University Press, vol. 104(4), pages 771-785.
- Bulkley, G. & Myles, G.D. & Pearson, B.R., 2000.
"On the Membership of Decision-Making Committees,"
0009, Exeter University, Department of Economics.
- 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.
- Moreton, David R., 1998. "An open shop trade union model of wages, effort and membership," European Journal of Political Economy, Elsevier, vol. 14(3), pages 511-527, August.
- Myles, Gareth D. & Naylor, Robin A., 1995.
"Do unions reduce discrimination? A model of Nash bargaining between a union and an employer with discriminatory tastes,"
Elsevier, vol. 2(3), pages 249-274, September.
- Myles, G.D. & Naylor, R.A., 1990. "Do Union Reduce Discrimination? A Model Of Nash Bargaining Between A Union And An Employeur With Discriminatory Tastes," The Warwick Economics Research Paper Series (TWERPS) 366, University of Warwick, Department of Economics.
- Alison L. Booth, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, Oxford University Press, vol. 100(1), pages 253-261.
- Vannetelbosch, Vincent J., 1997.
"Wage bargaining with incomplete information in an unionized Cournot oligopoly,"
European Journal of Political Economy,
Elsevier, vol. 13(2), pages 353-374, May.
- Vannetelbosch, V. J., . "Wage bargaining with incomplete information in an unionized Cournot oligopoly," CORE Discussion Papers RP 1303, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bulkley, George & Myles, Gareth D., 1997. "Bargaining over effort," European Journal of Political Economy, Elsevier, vol. 13(2), pages 375-384, May.
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