Profits Under Centralized Negotiations: The Efficient Bargaining Case

Author:

Buccella Domenico,Fanti Luciano

Abstract

AbstractMaking 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.

Publisher

Walter de Gruyter GmbH

Subject

General Economics, Econometrics and Finance

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1. CSR, vertical bargaining and cost pass-through;Asia-Pacific Journal of Accounting & Economics;2023-08-24

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