Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/78287
Authors: 
Gürtzgen, Nicole
Year of Publication: 
2001
Series/Report no.: 
Thünen-Series of Applied Economic Theory 28
Abstract: 
In a framework of a unionised international Bertrand duopoly with differentiated products, this paper analyses national labour market interdependencies and the consequences of trade liberalisation for union wages. The analysis suggests that national wages are likely to be strategic complements (substitutes), if products are ordinary substitutes (complements). Under the assumption of linear demand it is shown that bilateral trade liberalisation always leads to higher union set wages and union utilities, regardless of the nature of product rivalry. Analysing the consequences of unilateral tariff reductions it is shown that foreign tariff reductions always give rise to higher union wages and utilities, whereas the impact of unilateral domestic tariff reductions depends an the nature of product rivalry.
Subjects: 
Trade unions
Oligopoly
Intra-industry trade
Market integration
JEL: 
F12
J50
L13
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.