system of collective bargaining between a single industry union and the industry's employers association. Our cartel analysis … establishment of a fully tariff-enabled union. Such an endeavor must go hand in hand with the institutionalization of a competition …

In the absence of closed-shops and discriminatory wage policies, union membership can be explained by the existence of … Great Britain, we find evidence for social custom effects in the determination of trade union membership in both countries … which restrict free-riding on union services. The impact of social custom effects tends to be independent of union density …