Showing 1 - 10 of 12
We construct a model in which oligopolistic firms decide between locating in a country where employment protection implies costly output adjustments and in one without employment protection. Using a two-period three-stage game with uncertainty, we demonstrate that location is influenced by both...
Persistent link: https://www.econbiz.de/10010877094
We study how unionisation affects competitive selection between heterogeneous fi rms when wage negotiations can occur at the fi rm or at the profi t-centre level. With productivity speci c wages, an increase in union power has: (i) a selection-softening; (ii) a counter-competitive; (iii) a...
Persistent link: https://www.econbiz.de/10010550793
Although a large body of literature has focused on the effects of intra-firm differences on export performance, relatively little attention has been devoted to the interaction between firms' selection and international performance and labour market institutions - in contrast with the centrality...
Persistent link: https://www.econbiz.de/10010550817
We study the make-or-buy decision of oligopolistic firms in an industry in which final good production requires specialised inputs. Firms’ mode of operation decision depends on both the incentive to economize on costs and on strategic considerations. We explore the strategic incentives to...
Persistent link: https://www.econbiz.de/10010552382
We consider the make-or-buy decision of oligopolistic firms in an industry in which final good production requires specialised inputs. Factor price considerations dictate that firms acquire the intermediate abroad, by either producing it in a wholly owned subsidiary or outsourcing it to a...
Persistent link: https://www.econbiz.de/10010552388
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...
Persistent link: https://www.econbiz.de/10010553591
We examine how openness interacts with the coordination of consumption-leisure decisions in determining the equilibrium working hours and wage rate when there are leisure externalities (e.g., due to social interactions). The latter are modelled by allowing a worker’s marginal utility of...
Persistent link: https://www.econbiz.de/10010553646
In the theoretical macroeconomics literature, fiscal policy is almost uniformly taken to mean taxing and spending by a ‘benevolent government’ that exploits the potential aggregate demand externalities inherent in the imperfectly competitive nature of goods markets. Whilst shown to raise...
Persistent link: https://www.econbiz.de/10010553675
We show how consumers’ environmental concerns may limit ‘love of variety’ (LOV) and be reflected in consumers decisions. We investigate how the impact of environmental degradation on LOV influences demand and optimal product variety, and how a pollution tax on firms might be used to...
Persistent link: https://www.econbiz.de/10010553678
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/10011075634