Testing Oligopolistic Behavior within an Efficient Wage Bargaining Model

Jacques Bughin

No 1991004, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: This paper is devoted to the set up of a conjectural elasticity model with efficient bargaining wages between oligopolistic firms and rent-maximising unions. Based on a production function approach with first-order conditions for factors employment, the model is able to distinguish between output market power and unions market bargaining strength in extracting firms‚ actual surplus. The analysis is conducted at the firm level for four Belgian manufacturing sectors. Conclusion appear to confirm that ˆif any- firm market power tends to be eroded by wages rents, but always with asymetric power in favor of the firm. Market power is also such that it is mainly distributed to the highest market share firms within the industry.

Keywords: economic models; wages; collective bargaining (search for similar items in EconPapers)
Pages: 29
Date: 1991-05-01
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:ctl:louvir:1991004

Access Statistics for this paper

More papers in LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Virginie LEBLANC ().