In this model I show why unions sometimes do not reduce wages, even if it will be profitable for themselves and the economy. The reasons are simple. When I allow unions and firms to be bounded rational agents with limited information, it is individually rational for unions to behave like this....

The Uppsala model is commonly considered to be the pivotal approach in internationalization process research and often praised as particularly realistic. Yet at least implicitly and partially, it is also built on the assumption of rationally proceeding decision makers. This article challenges...