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Spatial Cournot competition and timing of endogenous wage setting

Author

Listed:
  • Qiang Wang

    (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China.)

  • Yuanyuan He

    (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China.)

  • Qi Chen

    (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China.)

Abstract

This paper studies the problem of location-quantity choice in a duopoly in which the wage paid by each firm is set by the corresponding monopoly union. Compared with the outcome obtained in location-price choice game, we find that the wage setting choice for both unions does not change in our model, they still choose to set wage sequentially. The equilibrium locations are not influenced by the timing of wage setting.

Suggested Citation

  • Qiang Wang & Yuanyuan He & Qi Chen, 2009. "Spatial Cournot competition and timing of endogenous wage setting," Economics Bulletin, AccessEcon, vol. 29(3), pages 1772-1782.
    • Handle: RePEc:ebl:ecbull:eb-09-00090
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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I3-P25.pdf
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    Citations

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    Cited by:

    1. Domenico Buccella, 2011. "Labor unions and economic integration: A review," Económica, Instituto de Investigaciones Económicas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 25-89, January-D.

    More about this item

    Keywords

    endogenous product costs spatial competition Cournot model location choice;

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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