Unionized Oligopoly and Trade Liberalization

Timothy Fisher and Donald Wright

Canadian Journal of Economics, 1999, vol. 32, issue 3, 799-816

Abstract: The authors analyze various forms of trade liberalization in a three-country model with unions. Oligopolistic firms in two countries face unionized workers, while an oligopolistic firm in the third country faces a competitive labor market. The general result is that a country with a union benefits from trade liberalization with a country that also has a unionized work force, while liberalization of trade between a country with a union and a country with a competitive labor market always makes the country with a union worse off.

Date: 1999
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