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To be (Unionized) or Not to be? A Case for Cost-raising Strategies

Author

Listed:
  • Bughin, Jacques R.J.
  • Vannini, Stefano

Abstract

This paper analyses the decision by a firm over whether or not to recognize unions (and therefore enter the bargaining process) in order to gain market power in unionized markets. We show that union power coupled with the nature of the union-firm bargaining process - i.e. scope and structure - are key determinants of a firm’s choice to be unionized and to strategically adopt cost-raising strategies.

Suggested Citation

  • Bughin, Jacques R.J. & Vannini, Stefano, 1996. "To be (Unionized) or Not to be? A Case for Cost-raising Strategies," CEPR Discussion Papers 1527, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1527
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    Cited by:

    1. Paul Heidhues, 2000. "Employers’ Associations, Industry-wide Unions, and Competition," CIG Working Papers FS IV 00-11, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).

    More about this item

    Keywords

    Cost-raising Strategies; Union-Firm Bargaining;

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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