We analyze the effects of unionization on the decision of a firm to either produce at home or abroad. We consider a model in which home and foreign workers are perfect substitutes and firms have an informational advantage concerning their productivity. The union offers wage-employment contracts...

This paper models privatization as a cooperative game between the government, a trade union and the private shareholders. These players know that privatization increases the efficiency of a firm, but only the management of the firm knows the exact value of the relevant productivity-increasing...