Merger Profitability in Unionized Oligopoly.

We examine how a merger a .ects wages of unionized labour and, in turn, the profitability of a merger under both Cournot and Bertrand competition. If unions are plant-specific, we find that a merger is more profitable than in a corresponding model with exogenous wages. In contrast to the received literature, we find that it can be more profitable totake partin amergerthan being an outsider. For firm-specific unions, on the other hand, results are reversed.

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Year of publication:	2000
Authors:	Lommerud, K.E. ; Straume, O.R. ; Sorgard, L.
Subject:	MERGERS \| TRADE UNIONS \| WAGES

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Type of publication:	Book / Working Paper
Notes:	31 pages
Classification:	J51 - Trade Unions: Objectives Structure, and Effects ; L13 - Oligopoly and Other Imperfect Markets ; L41 - Monopolization; Horizontal Anticompetitive Practices
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005245549