IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Is Wage-Leadership an Instrument to Coordinate Union's Wage-Policy? The Case of Imperfect Product Markets

  • Thomas Grandner

    ()

    (Department of Economics, Vienna University of Economics & B.A.)

Registered author(s):

    Given an oligopolistic product market, trade unions organized at firm level want to coordinate their wage bargaining activities, even if they are self interested. In this paper a situation is analysed, where for some exogenous reasons a complete centralization is not possible. Unions could try to coordinate wage-setting by ''wage leadership''. The outcome of such ''wage leadership'' is compared with the outcome of an uncoordinated bargaining and results in higher utilities for all unions. But the resulting wages and employment levels are not symmetrically neither for the unions nor for firms. Employment levels will change in different directions. In the ''wage leader'' firm employment falls and in the ''follower'' firm employment rises compared to an uncoordinated wage bargaining. This may cause problems with the implementation of ''wage leadership''

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.wu-wien.ac.at/inst/vw1/papers/wu-wp42.pdf
    Our checks indicate that this address may not be valid because: 404 Not Found (http://www.wu-wien.ac.at/inst/vw1/papers/wu-wp42.pdf [301 Moved Permanently]--> http://www.wu.ac.at/inst/vw1/papers/wu-wp42.pdf [301 Moved Permanently]--> http://wwwap.wu.ac.at/inst//vw1/papers/wu-wp42.pdf). If this is indeed the case, please notify (Department of Economics)


    Download Restriction: no

    Paper provided by Vienna University of Economics and Business, Department of Economics in its series Department of Economics Working Papers with number wuwp042.

    as
    in new window

    Length:
    Date of creation: Nov 1996
    Date of revision:
    Handle: RePEc:wiw:wiwwuw:wuwp042
    Note: PDF Document
    Contact details of provider: Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page: http://www.wu.ac.at/economics/en

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Carlin, Wendy & Soskice, David, 1990. "Macroeconomics and the Wage Bargain: A Modern Approach to Employment, Inflation, and the Exchange Rate," OUP Catalogue, Oxford University Press, number 9780198772446, March.
    2. de la Croix, David, 1994. " Wage Interdependence through Decentralized Bargaining," Journal of Economic Surveys, Wiley Blackwell, vol. 8(4), pages 371-403, December.
    3. 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.
    4. Dowrick, Steve, 1989. "Union-Oligopoly Bargaining," Economic Journal, Royal Economic Society, vol. 99(398), pages 1123-42, December.
    5. 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.
    6. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, March.
    7. Shapiro, Carl, 1989. "Theories of oligopoly behavior," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 6, pages 329-414 Elsevier.
    8. Moene, K.O. & Wallerstein, M. & Hoel, M., 1992. "Bargaining Structure and Economic Performance," Memorandum 10/1992, Oslo University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wiw:wiwwuw:wuwp042. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Department of Economics)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.