Union-Firm Bargaining and the Influence of Output Market Power and Production Technology on the Firm Systematic Risk
(1992) , 27 pages
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- Abstract
- The relationship between the CAPM firm beta and the firm's microeconomic decisions is studied by a model under uncertainty, which combines the feature of an ex ante 'inputs substitutable' production technology and the existence of a specific union which may bargain over different economic dimensions of the firm. It is shown that the earlier findings of a relationship between the firm Beta and such variables like the labor-capital ratio may be reinforced through the indirect channel of labor market bargaining, although the relationship heavily depends on the timing and scope of the union-firm bargaining process.
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Citations
Bughin, J. (1992). Union-Firm Bargaining and the Influence of Output Market Power and Production Technology on the Firm Systematic Risk (Working Papers Institut des sciences économiques 9201). https://hdl.handle.net/2078.5/281376