How does an increase in unionization costs, i.e. costs which arise when workers are organized by a union, affect the … unionization, heterogeneous firms as well as free market entry/exit. If unionization costs are relatively low (high), we find that … an increase in these costs decreases (increases) average productivity and welfare decreases (increases). Additionally, we …

the proper goal of a decision-making process, one must compare the error costs of false-positive outcomes and false …-negative outcomes. If error costs are symmetric, then the decision-making process should be designed to minimize the total risk of error …. However, if error costs are asymmetric, then the decision-making process should be designed to minimize the more costly type …