Discussion Paper Details

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

Author(s): Jacques R.J. Bughin and Stefano Vannini

Publication Date: December 1996

Keyword(s): Cost-raising Strategies and Union-Firm Bargaining

Programme Area(s): Industrial Organization

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.

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Bibliographic Reference

Bughin, J and Vannini, S. 1996. 'To be (Unionized) or Not to be? A Case for Cost-raising Strategies'. London, Centre for Economic Policy Research.