Testing Oligopolistic Behavior Within an Efficient Wage Bargaining Model
(1991) , 29 pages
Files
DP-9104.pdf
Open Access - Adobe PDF
- 1.62 MB
Details
- Authors
- Abstract
- This paper is devoted to the set up of a conjectural elasticity model with efficient bargaining wages between oligopolistic firms and rent-maximizing unions. Based on a production function approach with first-order conditions for factor employment, the model is able to distinguish between output market power and unions market bargaining strength in extracting firms' actual surplus. The analysis is conducted at the firm level for four Belgian manufacturing sectors. Conclusions appear to confirm that - if any - firm market power tends to be eroded by wages rents, but always with asymmetric power in favor of the firm. Market power is also such that it is mainly distributed to the highest market share firms within the industry.
- Affiliations
Citations
Bughin, J. (1991). Testing Oligopolistic Behavior Within an Efficient Wage Bargaining Model (Working Papers Institut des sciences économiques 9104). https://hdl.handle.net/2078.5/281358