Price competition and the effects of labour union on process innovation

Debasmita Basask

Discussion Papers from University of Nottingham, School of Economics

Abstract: We provide a new perspective to the literature on innovation in a unionised labour market by considering price competition in the product market. In contrast to the conventional wisdom, suggesting the presence of labour union reduces the incentive for innovation, we show that this view may not hold true if the ?firms compete in prices. We show that the incentive for innovation may be higher in the presence of labour unions if the goods are close substitutes. We also show that whether the incentive for innovation is higher under decentralised labour unions or under a centralised labour union may depend on product substitutability.

Keywords: Industry-wide union; Firm-specifi?c union; Process Innovation; Union Utility JEL classification: D43; J51; L13; O31 (search for similar items in EconPapers)
Date: 2012-05
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.nottingham.ac.uk/economics/documents/discussion-papers/12-05.pdf (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:not:notecp:12/05

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, School of Economics School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by ().