Profit-sharing, Bertrand competition and monopoly unions: a note
Dhillon, Amrita and Petrakis, Emmanuel (2001) Profit-sharing, Bertrand competition and monopoly unions: a note. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.612).
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This paper studies a strategic aspect of profit-sharing in an oligopolistic industry with a monopoly union. Whenever a uniform profit share exists in the industry, we show that a union that values the per worker remuneration positively, may have incentives to reduce industry employment, decreasing thus total output and causing total profits to increase. Thus, we show that profit-sharing may lead to higher profits for such an industry even if productivity effects are absent.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HD Industries. Land use. Labor|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Bertrand, Joseph, 1822-1900, Profit-sharing, Competition, Collective bargaining, Labor unions|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Official Date:||27 October 2001|
|Number of Pages:||14|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
 Bensaid, B. and R. J. Gary-Bobo (1991), Negotiation of Pro�t-sharing Contracts in Industry, European Economic Review 35.
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