Unionization and international market share rivalry: A paradox

  • Subhayu Bandyopadhyay
  • , Sudeshna Champati Bandyopadhyay

    Research output: Contribution to journalArticlepeer-review

    5 Scopus citations

    Abstract

    Two exporting firms (domestic and foreign) are considered which are symmetric in all respects except that one is unionized while the other faces a competitive labor market. Under free trade the unionized firm has the lower market share. Paradoxically, in the policy equilibrium, the unionized firm has the larger market share. Consequently, the nation hosting the unionized firm has the higher welfare level.

    Original languageEnglish
    Pages (from-to)153-161
    Number of pages9
    JournalReview of International Economics
    Volume7
    Issue number1
    DOIs
    StatePublished - Feb 1999

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