The literature suggests that the presence of a labor union poses operational risk for firms by reducing operating flexibility. We posit that managers stockpile inventory in response to their heightened operational risk, such as potential strikes, so that managers maintain bargaining power in...

Subcontracting — the practice of using intermediaries to contract workers, whether through temp agencies, manpower agencies, franchise, or other multilayered contracting — is an increasingly popular pattern of employment worldwide. Whether justified from a business perspective or not,...

Subcontracting — the practice of using intermediaries to contract workers, whether through temp agencies, manpower agencies, franchise, or other multilayered contracting — is an increasingly popular pattern of employment worldwide. Whether justified from a business perspective or not,...

We look for the equilibrium mix of trading institutions when manufacturers need sequences of labor services. The environment has two critical features: (a) Multilateral matching allows gains from specialization, but players incur specific set-up costs each time they are matched with a new...