Lommerud, Kjell Erik; Straume, Odd Rune; Sørgard, Lars - Department of Economics, University of California-Santa … - 2000
We examine how a merger a ffects 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...