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Bargaining agenda, timing, and entry

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  • Fanti, Luciano
  • Buccella, Domenico

Abstract

In a unionised Cournot duopoly, the present paper extensively re-examines the subject of the bargaining scope between firms and unions. It investigates the endogenous equilibrium agenda (Right-to-Manage vs Efficient Bargaining) that can arise under three timing specification of the bargaining game both for a given duopoly and monopoly with threat of entry. A novel result is that, in sequential negotiations, Efficient Bargaining emerges in equilibrium for a range of the unions’ power larger than in simultaneous negotiations. Moreover, given the potential market deterrence effect of the Efficient Bargaining, the conventional wisdom that this agenda is socially “efficient” can be reversed.

Suggested Citation

  • Fanti, Luciano & Buccella, Domenico, 2015. "Bargaining agenda, timing, and entry," MPRA Paper 64089, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64089
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    References listed on IDEAS

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    Cited by:

    1. Fanti, Luciano & Buccella, Domenico, 2015. "Bargaining agenda in public and private monopoly," MPRA Paper 64184, University Library of Munich, Germany.
    2. Luciano Fanti & Domenico Buccella, 2017. "Bargaining agenda in a unionised monopoly with network effects: when corporate social responsibility may be welfare-reducing," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 471-489, December.
    3. Fanti, Luciano & Buccella, Domenico, 2015. "Bargaining agenda in a unionised monopoly with network effects," MPRA Paper 64090, University Library of Munich, Germany.
    4. Fanti Luciano & Buccella Domenico, 2016. "Privatisation or State Ownership When Labour Market is Unionised?," Folia Oeconomica Stetinensia, Sciendo, vol. 16(1), pages 21-36, December.
    5. Luciano Fanti & Domenico Buccella, 2019. "When unionisation is profitable for firms in network industries," Metroeconomica, Wiley Blackwell, vol. 70(4), pages 711-722, November.
    6. Buccella, Domenico & Fanti, Luciano, 2020. "Do labour union recognition and bargaining deter entry in a network industry? A sequential game model," Utilities Policy, Elsevier, vol. 64(C).
    7. 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.

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    More about this item

    Keywords

    Efficient Bargaining; Right-to-manage; Cournot duopoly; Firm-union bargaining agenda;
    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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