EconPapers    
Economics at your fingertips  
 

Union-Firm Bargaining and the Influence of Product Market Power and Production Technology on Systematic Risk

Jacques Bughin

Management Science, 1995, vol. 41, issue 8, 1267-1278

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 substituable" production technology and the existence of a union which bargains over various economic dimensions of the firm. It is shown that the earlier findings of a relationship between the firm beta, the firm product market power, and the labor-capital ratio may be reinforced through the indirect channel of labor market bargaining, but the relationship becomes more complex, and heavily depends on the scope of the union-firm bargaining process. This yields the empirical prediction, confirmed for a panel of Belgian firms, that any proper estimation of the determinants of firm beta, must control for firms in the sample being unionized.

Keywords: union-firm bargaining; CAPM; imperfect competition (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.41.8.1267 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:41:y:1995:i:8:p:1267-1278

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Matthew Walls ().

 
Page updated 2020-09-19
Handle: RePEc:inm:ormnsc:v:41:y:1995:i:8:p:1267-1278