Merger Profitability in Unionized Oligopoly

Sørgard, Lars and Kjell Lommerud ()
Authors registered in the RePEc Author Service: Lars Sørgard and Odd Rune Straume

No 2738, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We examine how a merger affects wages of unionized labour and, in turn, the profitability of a merger under Cournot competition in differentiated products. If unions are plant-specific, we find that a merger is more profitable than in a corresponding model with exogenous wages. In contrast to the received literature, we find that it can be more profitable to take part in a merger than to be an outsider. For firm-specific unions, on the other hand, results are reversed.

Keywords: Merger profitability; Trade unions; Endogenous wages (search for similar items in EconPapers)
JEL-codes: J51 L13 L41 (search for similar items in EconPapers)
Date: 2001-03
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://cepr.org/publications/DP2738 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Merger Profitability in Unionized Oligopoly (2000)
Working Paper: Merger Profitability in Unionized Oligopoly (2000)
Working Paper: Merger Profitability in Unionized Oligopoly (2000)
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:cpr:ceprdp:2738

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP2738

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().