Relocation of production to countries with low labour cost have induced increased labour market flexibility, which has been praised as a silver bullet for economic growth and low unemployment. Within a unionised oligopoly framework, in which a multi-national firm has the option to relocate its...

Katz (1987), DeGraba (1990), and Yoshida (2000) have formulated theories that price discrimination bans in intermediary goods markets tend to have positive effects on allocative, dynamic and productive efficiency, respectively. We show that none of these results is robust vis-à-vis endogenous...

This paper analyses the extent of inter-format retail competition between supermarkets, discounters and drugstores in Germany, using data from the German market for diapers. We estimate a random coefficient logit model at the individual household level. Based on consumer substitution patterns,...

Research on bargaining power in vertical relationships is scarce. It remains particularly unclear which factors drive bargaining power between the two negotiating parties in a vertical structure. We use a demand model where the consumer demand determines the total pie of industry profits....

We re-examine the view that a ban on price discrimination in input markets is particularly desirable in the presence of buyer power. This argument crucially depends on an inverse relationship between downstream firms' profits and the uniform input price. Assuming different input efficiencies...

This paper explores the role that employers’ associations may play in centralized wage bargaining processes. It thereby adds to the literature on labor markets, in which the relationship between union behavior and unemployment has been explored quite extensively, while employers’...

This paper examines how unionization structures that differ in the degree of wage centralization affect firms' incentives to increase labor productivity. We distinguish three modes of unionization with increasing degree of centralization: (1) “Decentralization” where wages are determined...

Der vorliegende Beitrag interpretiert die Standortentscheidung von Unternehmen als den Abschluß eines impliziten Franchisevertrages zwischen dem Standort als Franchisegeber und dem Unternehmen als Franchisenehmer. Standorte bieten ein Bündel von Dienstleistungen wie die Nutzung von...

This paper explores the anticompetitive effects that wage determination between an employers. association and the industry.s labor union may have when wages are generally binding. It is shown that employers. associations can, under certain circumstances, use generally binding standard wages to...

In the literature on international trade, very little attention has been given to informational asymmetries between firms and consumers with respect to product quality. The few economic models that analyze the question of how asymmetric information about product quality might affect trade flows...