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A note on unionized firms' incentive to integrate vertically

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  • Grandner, Thomas

Abstract

In this paper I analyze a vertically structured monopolized market with unionized firms. I compare two types of contracts: vertical integration and franchising. With franchising and wage bargaining at the firm level the union in the downstream firm is either very powerful or has no bargaining power at all, depending on the specific time structure of the model. These arguments could make integration preferable for the profit owners even if integration is accompanied by small transaction costs. (author's abstract)

Suggested Citation

  • Grandner, Thomas, 2000. "A note on unionized firms' incentive to integrate vertically," Department of Economics Working Paper Series 70, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus005:1276
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    References listed on IDEAS

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    12. Engelbert Stockhammer & Paul Ramskogler, 2008. "Uncertainty and Exploitation in History," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(1), pages 175-194, March.
    13. Silvia Rocha-Akis, 2006. "Labour tax policies and strategic offshoring under unionised oligopoly," Department of Economics Working Papers wuwp099, Vienna University of Economics and Business, Department of Economics.
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    15. Grafeneder-Weissteiner, Theresa, 2010. "Demographic change, growth and agglomeration," Department of Economics Working Paper Series 132, WU Vienna University of Economics and Business.
    16. Currie, Martin & Kubin, Ingrid, 2005. "Fixed price dynamics versus flexible price dynamics," Department of Economics Working Paper Series 89, WU Vienna University of Economics and Business.
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    vertical integration; trade unions;

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