Although empirical evidence shows that higher product market competition increases unionized wage, the theoretical … literature did not pay much attention to this aspect. We show that the positive relation between product market competition and …

It is usually believed that higher competition, implying more active firms, benefits consumers and encourages the … antitrust authorities to foster competition. We show that this view can be misleading, and higher competition may actually make … of increasing competition through more firms. …

It is generally believed that higher competition benefits consumers, and encourage the antitrust authorities to foster … competition. We show that this view can be misleading in the presence of welfare-maximising nationalised firms. Using a simple … consumers. Our result is important for competition policy. …

Considering a move from monopoly to duopoly, Bastos et al. (“Open shop unions and product market competition”, 2010 … the evidence of a positive relationship between product market competition and unionized wage. We show that their … initially, higher product market competition reduces unionized wage, irrespective of the union density, bargaining power of the …

be a profitable strategy under both monopoly and product market competition. The incentive for bi-sourcing depends on the … product market and outside input market competition. Our result suggests that certain amount of input production with a …