Moen, Espen R; Morten Dalen, Dag; Fehr, Nils-Henrik M … - C.E.P.R. Discussion Papers - 2003
In many regulated industries labour unions are strong and there is clear empirical evidence of labour rent-sharing. In this Paper, we study optimal regulation in a model in which wages are determined endogenously by wage bargaining at the firm level. A seemingly robust conclusion, at least when...