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Author: | Mauleon, A. Vannetelbosch, V. J. |
Title: | Market competition and strike activity |
Journal: | International Journal of Industrial Organization
2003 : MAY, VOL. 21:5, p. 737-758 |
Index terms: | Market conditions Competition Product differentiation Pay Salary structure Bargaining |
Language: | eng |
Abstract: | The authors develop a model of wage bargaining with private information in a duopoly. They investigate how product differentiation and market competition affect wages and strikes. If bargaining takes place at the industry-level, then both the wage outcome and the strike activity do not depend of product differentiation whatever the type of market competition. However, if bargaining takes place at the firm-level, then wages and strikes are increasing with the degree of product differentiation, and the strike activity is smaller under Bertrand than under Cournot competition. |
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