DP1527 To be (Unionized) or Not to be? A Case for Cost-raising Strategies
|Author(s):||Jacques R.J. Bughin, Stefano Vannini|
|Publication Date:||December 1996|
|Keyword(s):||Cost-raising Strategies, Union-Firm Bargaining|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=1527|
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.