2019
DOI: 10.1111/meca.12249
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When unionisation is profitable for firms in network industries

Abstract: In an industry characterised by the presence of network effects, this paper investigates a duopolistic game in which firms may choose whether to bargain over wages and employment with unions or to face a competitive labour market (i.e., without unions). If unions are sufficiently wage‐sensitive, it is shown that the presence of sufficiently large network effects makes unionisation the Pareto efficient sub‐game perfect Nash equilibrium outcome for firms.

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Cited by 2 publications
(2 citation statements)
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“…Formal unionisation rates are low in technology companies, though higher in academia [18]. However, it is clear that the AI community has substantial bargaining power, of the type described in our opening quote.…”
Section: Worker Organizing and Bargainingmentioning
confidence: 85%
“…Formal unionisation rates are low in technology companies, though higher in academia [18]. However, it is clear that the AI community has substantial bargaining power, of the type described in our opening quote.…”
Section: Worker Organizing and Bargainingmentioning
confidence: 85%
“…Recent applications includeAlbert and Meckl (2003),Bhattacharyya and Gupta (2015),Buccella and Wang (2021),Chaudhuri (2016),Cogliano et al (2016), de Pinto and Lingen (2019),Dobbelaere and Kiyota (2018),Falch (2001),Fanti and Buccella (2019),Fuest and Thum (2001),Jayadev (2007),Julius (2009),Kraft et al (2011),Lechthaler and Snower (2012),Merkl and Schmitz (2011),Montagna and Nocco (2015),Meccheri and Fanti (2018) Sattinger and Hartog (2013),Tavani (2012Tavani ( , 2013 andZiesemer (2005).…”
mentioning
confidence: 99%