Arbeitspapier

When unionisation is profitable for firms in network industries

In an industry characterised by the presence of network effects, this paper investigates a duopolistic game in which firms may choose whether to bargain over wages and employment with unions or to face a competitive labour market (i.e. without unions). If unions are sufficiently risk-averse, it is shown that the presence of strong network effects makes unionisation the Pareto-efficient sub-game perfect Nash equilibrium outcome for firms. The issue of entry is also investigated.

Sprache
Englisch

Erschienen in
Series: Economics Discussion Papers ; No. 2017-9

Klassifikation
Wirtschaft
Trade Unions: Objectives, Structure, and Effects
Oligopoly and Other Imperfect Markets
Firm Objectives, Organization, and Behavior: General
Thema
unionised oligopoly
competitive labour market
efficient bargaining
market entry and entry deterrence

Ereignis
Geistige Schöpfung
(wer)
Fanti, Luciano
Buccella, Domenico
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2017

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Fanti, Luciano
  • Buccella, Domenico
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2017

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