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Syndicats ouvriers et firmes multi‐produits dans des économies fermées et ouvertes .
Author(s) -
Egger Hartmut,
Koch Michael
Publication year - 2012
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2012.01745.x
Subject(s) - scope (computer science) , oligopoly , wage , product (mathematics) , open economy , product market , scale (ratio) , economics , economies of scale , industrial organization , differential (mechanical device) , product differentiation , economies of scope , liberalization , business , labour economics , microeconomics , market economy , monetary economics , welfare , physics , geometry , mathematics , engineering , quantum mechanics , incentive , computer science , exchange rate , programming language , aerospace engineering
This paper sets up a general oligopolistic equilibrium model with multi‐product firms and union wage setting. In this model, we conduct two policy experiments. First, we show that deunionization induces a general decline in firm scale and scope, the respective reduction being more pronounced in non‐unionized industries. Second, we study the consequences of trade liberalization, and show that access to foreign markets lowers firm scope in all industries as well as the scope differential between unionized and non‐unionized firms. Adjustments in firm scale turn out to be less clear‐cut and, inter alia, depend on the degree of product differentiation.