Employers' associations, industry-wide unions, and competition
Abstract: "This paper investigates the effects of industry-wide unions and employers' associations in a duopolistic industry. Using an efficient bargaining model, we show that it is profitable for workers to form an industry union if firms produce...
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Abstract: "This paper investigates the effects of industry-wide unions and employers' associations in a duopolistic industry. Using an efficient bargaining model, we show that it is profitable for workers to form an industry union if firms produce goods that are substitutes. In our model industry-wide unionization raises serious antitrust issues since it leads to a monopolistic product market outcome - regardless of whether bargaining is centralized or not. Firms respond to an industry union by forming an employers' association to increase their bargaining power. If firms' productivity differences are relatively small or their products relatively heterogeneous, employers' associations have distributional but not efficiency consequences. If, however, productivity differences between firms are relatively large and their products are relatively homogeneous, employers' associations may further reduce welfare." (author's abstract)
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Die Gestalter
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