Lommerud, K.E.; Straume, O.R.; Sorgard, L. - Norges Handelshøyskole (NHH) - 2000
We examine how a merger affects wages of unionized labour and, in turn, the profitability of a merger under both Cournot and Bertrand competition.If unions are plant-specific, we find that a merger is more profitable than in a corresponding model with exogenous wages.