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Profits Under Centralized Negotiations: The Efficient Bargaining Case

  • Domenico Buccella EMAIL logo und Luciano Fanti
Veröffentlicht/Copyright: 5. Dezember 2018

Abstract

Making use of a Conjectural Variation model, the present note re-examines the subject of the firms’ profits ranking under different degrees of market competition in a unionized duopoly with industry-wide Efficient Bargaining (EB). It is shown that, while Cournot-like competition profits are always larger than Bertrand-like ones with separated wage negotiations, an uniform wage bargaining can lead to the appearance of the reversal.

JEL Classification: D43; J51; L13

Acknowledgements

We are extremely grateful to an anonymous referee for her/his useful comments and suggestions that have enhanced the clarity and quality of the paper. All remaining errors are, of course, our sole responsibility. The usual disclaimers apply.

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Published Online: 2018-12-05

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