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Strategic investment and international outsourcing in unionised oligopoly
Leahy, Dermot; Montagna, Catia - In: Labour Economics 19 (2012) 2, pp. 260-269
We develop an oligopoly model in which firms facing unionised domestic labour markets choose between producing an … intermediate good in-house and outsourcing it to a non-unionised foreign supplier that makes a relationship-specific investment in … developing the intermediate. The paper sheds light on the issue of whether international outsourcing offers a means to ‘escape …
Persistent link: https://www.econbiz.de/10010577401
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Economising, strategising and the vertical boundaries of the firm
Leahy, Dermot; Montagna, Catia - In: The B.E. journal of theoretical economics 17 (2017) 1, pp. 1-35
Persistent link: https://www.econbiz.de/10011593809
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Firm Heterogeneity and Wages under Different Bargaining Regimes: Does a Centralised Union Care for Low-Productivity Firms?
Guertzgen, Nicole - In: Journal of Economics and Statistics (Jahrbuecher fuer … 229 (2009) 2-3, pp. 239-253
wages to the variability in productivity conditions in a unionised oligopoly framework. The model distinguishes centralised …
Persistent link: https://www.econbiz.de/10008559107
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Outsourcing in a Global Economy
Grossman, Gene; Helpman, Elhanan - C.E.P.R. Discussion Papers - 2002
We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and … trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are … governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic …
Persistent link: https://www.econbiz.de/10005666820
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Global versus Local Competition
Legros, Patrick; Stahl, Konrad - C.E.P.R. Discussion Papers - 2002
market performance under monopoly versus oligopoly. If consumers have to choose once where to shop we show that under all …, prices may increase under oligopoly. We check the robustness of these results in various extensions and draw consequences on …
Persistent link: https://www.econbiz.de/10005498025
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Flexibility and Collusion with Imperfect Monitoring
Bigoni, Maria; Potters, Jan; Spagnolo, Giancarlo - C.E.P.R. Discussion Papers - 2012
Flexibility - the ability to react swiftly to others' choices - facilitates collusion by reducing gains from defection before opponents react. Under imperfect monitoring, however, flexibility may also hinder collusion by inducing punishment after too few noisy signals. The combination of these...
Persistent link: https://www.econbiz.de/10011084106
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Union wage-setting and international trade with footloose capital
Egger, Hartmut; Etzel, Daniel - In: Regional Science and Urban Economics 48 (2014) C, pp. 56-67
This paper sets up a general oligopolistic equilibrium model with two countries that differ in the centralization of union wage-setting. Being interested in the consequences of openness, we show that, in the short run, trade increases welfare and employment in both locations, and it raises...
Persistent link: https://www.econbiz.de/10010931309
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Trade cost reduction, subcontracting and unionised wage
Maiti, Dibyendu; Mukherjee, Arijit - In: Labour Economics 21 (2013) C, pp. 103-110
We show the effects of trade cost reduction in the presence of a domestic firm's strategic output allocation between formal in-house production and subcontracting to the informal sector. Considering a one-way trade, we show that trade cost reduction increases the in-house unionised wage,...
Persistent link: https://www.econbiz.de/10010636429
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Globalization and Union Opposition to Technological Change
Lommerud, Kjell Erik; Meland, Frode; Straume, Odd Rune - C.E.P.R. Discussion Papers - 2005
We find that trade unions have a rational incentive to oppose the adoption of labour-saving technology when labour demand is inelastic and unions care much for employment relative to wages. Trade liberalization typically increases trade union technology opposition. These conclusions are reached...
Persistent link: https://www.econbiz.de/10005123737
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The impact of trade on employment, welfare, and income distribution in unionized general oligopolistic equilibrium
Egger, Hartmut; Etzel, Daniel - In: European Economic Review 56 (2012) 6, pp. 1119-1135
This paper sets up a multi-sector general oligopolistic equilibrium trade model in which all firms face wage claims of firm-level unions. By accounting for productivity differences across industries, the model features income inequality along multiple lines, including inequality between firm...
Persistent link: https://www.econbiz.de/10010597470