Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46927
Authors: 
Lorz, Jens Oliver
Year of Publication: 
1997
Series/Report no.: 
Kiel Working Papers 799
Abstract: 
This paper analyzes wage competition between national trade unions caused by the international mobility of capital. Perfect capital mobility leads to a Bertrand result for the outcome of wage competition: A pure strategy equilibrium implies full employment in all countries. It is shown that such an equilibrium exists for a sufficiently large number of countries. As extensions of the basic model, decreasing returns to scale and capital adjustment costs are introduced.
Subjects: 
capital mobility
trade unions
JEL: 
F2
J5
Document Type: 
Working Paper

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