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Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf >
DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE) >
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http://hdl.handle.net/10419/55827
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| Title: | | Unionization structures in international oligopoly  |
| Authors: | | Pagel, Beatrice Wey, Christian |
| Issue Date: | | 2012 |
| Series/Report no.: | | DICE discussion paper 44 |
| Abstract: | | We examine how competition in international markets affects a union's choice of wage regime which can be either uniform or discriminatory. Firms are heterogenous with regard to international competition. When unions choose their wage regimes sequentially, a discriminatory outcome becomes more likely when international competition increases. However, for intermediate levels a union may stick with a uniform wage regime even if the rival union adopts a discriminatory regime. When competition is sufficiently intense, both unions revert to the discriminatory regime. Paradoxically only in those latter instances all parties (consumers, workers and firms) may be better off (each in aggregate) if all unions adopt a uniform wage regime. We conclude that union incentives to coordinate their wage regimes should then also become largest. |
| Subjects: | | Unionization International Oligopoly Uniform Wages |
| JEL: | | D43 J51 L13 |
| ISBN: | | 978-3-86304-043-7 |
| Document Type: | | Working Paper |
| Appears in Collections: | | DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE)
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