Acocella, Nicola; Bartolomeo, Giovanni Di - EconWPA - 2003
it is in the interest of both agents to implement a corporatist approach to economic policies. We find that it is … difficult to implement corporatism, although it generally increases social welfare, since it often reduces the union’s utility …. In particular, we show that a micro-founded union will never find it profitable to co- operate with the Government …