Oligopoly, Open Shop Unions and Trade Liberalisation
University of Nottingham Research Paper No. 2007/30
33 Pages Posted: 10 Sep 2007
Date Written: 2007
In an international oligopoly model, we investigate how trade liberalisation impacts on collective bargaining outcomes when workers are represented by open shop unions. We find that, with intermediate levels of union density, trade liberalisation may lead to higher negotiated wages even if no trade occurs in equilibrium. In addition, we show that union wages may be higher with free trade than in autarky.
Keywords: International oligopoly, bargaining, open shop unions, trade liberalisation
JEL Classification: F15, J5, L13
Suggested Citation: Suggested Citation