On the incentives to increase input efficiency under monopoly trade unions

被引:0
作者
Biswas, Tapan [1 ]
McHardy, Jolian [2 ]
机构
[1] Univ Hull, Ctr Econ Policy, Kingston Upon Hull HU6 7RX, N Humberside, England
[2] Univ Sheffield, Dept Econ, 9 Mappin St, Sheffield S1 4DT, S Yorkshire, England
来源
REVIEW OF ECONOMIC ANALYSIS | 2012年 / 4卷 / 01期
关键词
Unions; Technological change; Cournot duopoly;
D O I
暂无
中图分类号
F [经济];
学科分类号
02 ;
摘要
We examine the effects of and the incentives for increasing input efficiency within a spatially segregated Cournot duopoly with monopoly trade unions whose utility functions depend on bothwages and employment. We show that with neoclassical as well as Leontief technology, unions raise wages to appropriate fully the gains from labor-saving technological (or organisational) improvements, leaving the firm with no incentive to invest in increasing the efficiency of workers. However, capital-saving technological improvement may be profitable depending on the elasticity of substitution. Finally, we examine the implication of a fixed minimum wage (or competitive labor market) in one country. (C) 2006 Elsevier B.V. All rights reserved.
引用
收藏
页码:39 / 51
页数:13
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