We study the endogenous formation of upstream R&D networks in a vertically related industry. We find that, when upstream firms set prices, the complete network that includes all firms emerges in equilibrium. In contrast, when upstream firms set quantities, the complete network will arise but...

In a unionized Cournot duopoly under decentralized wage bargaining regime, we analyzed undeclared labour in a matrix game. We reveal the opportunity cost between taxation and contributions for social insurance that firms and unions face, while we examine all relevant possible unilateral...

Undeclared labour constitutes a complex phenomenon that has not yet been analyzed within I/O framework. In a unionized duopoly under decentralized wage bargaining context, we reveal the opportunity cost that exists between the taxation and the contributions for social insurance. Comparing to a...

In a duopoly where firms are competing by adjusting their quantities and the wages are exogenously determined, we analyze the undeclared labour phenomenon and its side effects in product market. Our analysis focuses on the opportunity cost between the taxation and the contributions for social...

In a union-duopoly strategic context, we explore the endogenous determination and the effects of the unionization structure in a market facing the possibility of inward foreign direct investments (FDI). We focus our analysis on the role of the reservation wages in home and foreign market and...

In a union-oligopoly context, we interpret the optimal equilibria may arise from the implementation of any possible policies of a benevolent social planner in the labour market. The applied policies may contradict or correspond with unions' and firms' objectives, while in other cases...

In the context of a homogenous good industry with Cournot rivalry and technological asymmetries among firms, equally skilled workers can be grouped according to their different reservation wages. Under decentralized firm-union bargaining, we show that unions may offer to firms the option to...

This paper explores the endogenous emergence of wage bargaining institutions in sectors with market power. We show that asymmetries in firms’ productivity and in unions’ risk aversion and/or bargaining power may generate various degrees of centralization in wage bargaining, which are often...