The paper develops a theory of the firm’s capital-labor ratio unionization of its labor force. Using explicit game theoretical solutions to union-firm bargaining, it is demonstrated how the firm’s product market power interacts with the inputs allocation rule in such a way that unionism...

This paper analyses how a diversifying firm can strategically design its wage policy in order to gain market power in unionized markets. This paper shows that union power in the local market power in the local market coupled with the nature of the wage contractual agreement process-i.e. the type...

The paper uses the recent union-firm bargaining literature for a theoretical appraisal of the positive relationship found in some empirical studies between union wages and the constituents of firm’s monopolistic rents. The paper assesses that this relationship depends on many factors, such as...

This note provides a simple theoretical arguments, borrowed from the managerial incentives literature, as to why unionized firms acting non-cooperatively in the output market may find optimal to commit to bargaining outcomes off their (static) labor demand curve, hence restricting their behavior...

This note reconsiders the problem of managerial incentives in the context of an unionized Nash-Cournot oligopoly. It is hightlighted that managerial incentives weaken union power at industry equilibrium, although, as a symptom of a prisoner dilemma, unions are not reluctant to the existence of...

This paper applies a production function approach to the analysis of imperfections in output and factor markets and develops a test of efficient bargaining for wage and employment determination. Based on a translog function defined at the firm level, estimates for the Belgian chemical industry...

The paper analyses the consequence of introducing (decentralized) union-firm bargaining in the theory of the firm under uncertainty. Contrary to earlier beliefs that short-run output does not change with additive uncertainty, it is shown that risk preference may matter when union-firm bargaining...

This paper analyses the relationship between union power and the presence of multinational enterprises. The focus is on how union-firm bargaining structure and bargaining scope affect-and are affected by-strategic foreign direct investment (FDI). Concerning the bargaining scope (for a given...

This paper attempts to provide some new evidence of the so called 'supplier-induced demand effect' in the hospital sector. By means of an endogenous regime switching model, the maximum likelihood estimates for Belgium are consistent with the idea that hospitals in excess-capacity actually...

This model estimates an asymetric Nash efficient wage bargaining model for some Belgian manufacturing sectors at the firm level, under the premises that bargaining units are separate for 'R&D' people and other 'common' workers in order to account for 'wage rivalry' effects. The importance of R&D...