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an intermediate component in-house or purchasing it from a domestic supplier. We model outsourcing as a bilateral …’ incentive to outsource. Consumer gains from trade liberalisation are enhanced when it leads to less outsourcing. …
Persistent link: https://www.econbiz.de/10005424462
We critically consider the conventional belief that the attractiveness of international outsourcing lies in cheaper … labour costs overseas and that it offers a means to ‘escape’ the power of unions. We develop an oligopoly model in which … firms facing unionised domestic labour market choose between producing an intermediate in-house or outsourcing it to a non …
Persistent link: https://www.econbiz.de/10010553591
We develop an oligopoly model in which firms facing unionised domestic labour markets choose between producing an … intermediate good in-house and outsourcing it to a nonunionised foreign supplier that makes a relationship-specific investment in … developing the intermediate. The paper sheds light on the issue of whether international outsourcing offers a means to ‘escape …
Persistent link: https://www.econbiz.de/10010610378
We develop an oligopoly model in which firms facing unionised domestic labour markets choose between producing an … intermediate good in-house and outsourcing it to a non-unionised foreign supplier that makes a relationship-specific investment in … developing the intermediate. The paper sheds light on the issue of whether international outsourcing offers a means to ‘escape …
Persistent link: https://www.econbiz.de/10010577401
In a union-duopoly strategic context, we explore the endogenous determination and the effects of the unionization structure in a market facing the possibility of inward foreign direct investments (FDI). We focus our analysis on the role of the reservation wages in home and foreign market and...
Persistent link: https://www.econbiz.de/10011094921
In a union-oligopoly context, we interpret the optimal equilibria may arise from the implementation of any possible …
Persistent link: https://www.econbiz.de/10011096779
Within a two-country model of international trade in which heterogeneous firms face firm-specific unions, we study the effects of different forms of trade liberalisation on market structure and competitive selection in the presence of inter-country asymmetries in size and labour market...
Persistent link: https://www.econbiz.de/10010562045
addressed in perfectly or monopolistically competitive models. Drawing on recent work, a model of oligopoly in general …
Persistent link: https://www.econbiz.de/10011265227
This paper examines how trade liberalisation affects innovation, profits and welfare in a reciprocal markets model when firms pre-commit to R&D investment. First, we show that, for a range of trade costs, there are multiple equilibria, implying that the path of trade liberalisation is not...
Persistent link: https://www.econbiz.de/10011124442
In a unionized Cournot duopoly under decentralized wage bargaining regime, we analyzed undeclared labour in a matrix game. We reveal the opportunity cost between taxation and contributions for social insurance that firms and unions face, while we examine all relevant possible unilateral...
Persistent link: https://www.econbiz.de/10011129904