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When do firms prefer either monopolistic unions or an efficient bargaining?

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  • Luciano Fanti

Abstract

In this paper we investigate the effects of two popular labour market institutions - namely, Monopoly Union and Efficient Bargaining - on market and welfare outcomes in a Cournot duopoly. We show that depending on values of the union power, the Monopoly Union institution may be preferred by both firms and unions, in particular when the value of the union power is included between a "medium-high" range, while if Efficient Bargaining and Right-to-Manage arrangements are compared no agreement may occur. Therefore the detection of a set of levels of bargaining for which there exists an agreement on the Monopoly Union institution may be interesting also for policy purposes.

Suggested Citation

  • 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.
    • Handle: RePEc:pie:dsedps:2011/130
    Note: ISSN 2039-1854
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    File URL: https://www.ec.unipi.it/documents/Ricerca/papers/2011-130.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Efficient bargaining; Monopoly union; Right-to-manage; Cournot duopoly.;
    All these keywords.

    JEL classification:

    • 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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