Unions and Entry to Traditional and Network Industries

Luciano Fanti and Domenico Buccella

Economía: teoría y práctica, 2020, vol. 52, issue 1, 43-68

Abstract: The paper analyses the effects of unionisation of the labour market under the Right-to-Manage (RTM), and Sequential Efficient Bargaining (SEB) institutions, on the entry of a firm, then comparing traditional and network industries. The findings show that under RTM unions always play a pro-competitive role, while under EB they may become a barrier to entry – under the form of the payment of a fee to obtain a monopoly grant by an authority - in network industries with intense network effects. These results shed light on the importance of the presence, on the one hand, of unions and different bargaining agendas and on other hand of network goods on the shape of industrial competition, with the evident anti-trust and competition policies implications.

Keywords: Sequential Efficient bargaining; Right-to-manage; Firm-union bargaining agenda; Entry; Network effects. (search for similar items in EconPapers)
JEL-codes: J51 L13 L21 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ety:journl:v:52:y:2020:i:1:p:43-68

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