Profitable parallel trade in unionized markets

Arijit Mukherjee and Laixun Zhao

Journal of Economics, 2012, vol. 107, issue 3, 267-276

Abstract: Why do producers often accept parallel trade in some markets such as automobiles, clothing, toys and consumer electronics? This paper points to a new factor, viz., the wage reducing effect of parallel trade in unionized markets, which may make parallel trading beneficial to a manufacturer. The benefit of parallel trade disappears in our analysis when such factor is removed. Copyright Springer-Verlag 2012

Keywords: Labor union; Parallel trade; F12; F16; F23; J51 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:107:y:2012:i:3:p:267-276

DOI: 10.1007/s00712-012-0267-7

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