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Union-Firm Interaction and the Right to Manage

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  • Dobson, Paul W

Abstract

In the context of price-setting oligopoly, this paper shows that there may be consensus in union-employer bargaining for limiting the scope of bargaining to determining wage levels and allowing the employer to act unilaterally when competing in the product market. A strategic commitment by each union-firm pair to a right-to-manage framework, rather than a participatory approach, may benefit the bargaining parties since this entails higher negotiated wage rates which, by dampening competition in the product market, may allow for an increase in the amount of surplus generated by the parties. Copyright 1997 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Dobson, Paul W, 1997. "Union-Firm Interaction and the Right to Manage," Bulletin of Economic Research, Wiley Blackwell, vol. 49(3), pages 213-229, July.
    • Handle: RePEc:bla:buecrs:v:49:y:1997:i:3:p:213-29
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    Cited by:

    1. Merkl, Christian & Snower, Dennis, 2009. "Monetary Persistence, Imperfect Competition, And Staggering Complementarities," Macroeconomic Dynamics, Cambridge University Press, vol. 13(1), pages 81-106, February.
    2. Domenico Buccella & Luciano Fanti, 2017. "A game-theoretic approach to the choice of union-oligopoly baargaining agenda," Discussion Papers 2017/214, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. Pohl, Hartmut, 1998. "Die Rolle von Arbeitsmärkten bei der Qualitätsauswahl in vertikal differenzierten Märkten," Discussion Papers, Series I 292, University of Konstanz, Department of Economics.
    4. Kopel, Michael & Petrakis, Emmanuel & Ressi, Anna, 2019. "Endogenous scope of firm-union bargaining with vertical pay comparisons," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 39-52.
    5. Symeonidis, George, 2010. "Downstream merger and welfare in a bilateral oligopoly," International Journal of Industrial Organization, Elsevier, vol. 28(3), pages 230-243, May.
    6. Julia Müller & Thorsten Upmann, 2013. "Centralised Labour Market Negotiations," CESifo Working Paper Series 4470, CESifo.
    7. Pohl, Hartmut, 1998. "Beziehungsspezifische Investitionen und Form des Verhandlungsprozesses," Discussion Papers, Series I 293, University of Konstanz, Department of Economics.
    8. Symeonidis, George, 2010. "Downstream merger and welfare in a bilateral oligopoly," International Journal of Industrial Organization, Elsevier, vol. 28(3), pages 230-243, May.
    9. Domenico Buccella, 2014. "Bargaining Structures and Agendas in an Unconstrained Hotelling Model," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 8(3), pages 149-167, December.
    10. Luciano Fanti & Domenico Buccella, 2018. "Union–Firm Bargaining Agenda Revisited: When Unions Have Distinct Preferences," Bulletin of Economic Research, Wiley Blackwell, vol. 70(1), pages 35-50, January.
    11. Domenico Buccella, 2014. "Product market competition with differentiated goods and social welfare in the presence of an industry-wide union," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 13(2), pages 131-140, August.
    12. George Symeonidis, 2008. "Downstream Competition, Bargaining, and Welfare," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(1), pages 247-270, 03.
    13. Dobson, Paul W. & Waterson, Michael, 2007. "The competition effects of industry-wide vertical price fixing in bilateral oligopoly," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 935-962, October.
    14. Domenico Buccella, 2015. "Unionized duopoly, market competition with differentiated products, and welfare," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 455-473, December.
    15. Fanti, Luciano & Buccella, Domenico, 2015. "Bargaining agenda, timing, and entry," MPRA Paper 64089, University Library of Munich, Germany.

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