1,721,045 research outputs found
Corporate social responsibility in a unionised duopoly
Get PDFAbstract: It is commonly believed that the choice of adopting Corporate Social Responsibility (CSR) behaviours is beyond the scope of profit enhancement. In a unionised oligopoly with centralised wage setting and decreasing returns to scale technology, the present paper shows that the owners’ choice of the CSR engagement level is dictated by the firms’ purely selfish profit-seeking objective. In fact, profits under CSR are higher than under the standard profit-maximising rule. Moreover, the union, consumers and the social welfare on the whole with CSR are higher than without CSR: the firms’ owners social concern leads to a Pareto-superior outcome.Resumen: Suele considerarse que la adopción de conductas asociadas a la responsabi- lidad social empresarial está más allá de la maximización de beneficios. Este trabajo muestra que en el contexto de un oligopolio sindicalizado con decisiones centralizadas de fijación de salarios y retornos decrecientes, la elección del nivel de adopción de responsabilidad social empresarial se rige por el motivo de maximización de utilidades. De hecho, los beneficios de la empresa y el bienestar social, de los consumidores y trabajadores son mayores, conduciendo a un resultado Pareto superior
Strategic trade policy with asymmetric bargaining agenda
Get PDFThis paper challenges the conventional wisdom of the strategic trade policy – in which governments set subsidies for their own exporter firms – under unionisation by considering the realistic difference in the labour market institutions between producing countries, i.e. asymmetric bargaining agenda (Efficient Bargaining, EB, and Right-to Manage, RTM) in rival firms. We show that 1) the government whose firm is EB (resp. RTM) always finds convenient to set an export tax (resp. an export subsidy), regardless of whether the other government intervenes; 2) an asymmetric equilibrium emerges in which only one government intervenes; 3) under appropriate side-payments, governments would find beneficial to coordinate either over mutual intervention or free trade, with the latter ensuring higher welfare levels; 4) the asymmetric equilibrium is preferred by the RTM country because its national social welfare under intervention is always higher than under free trade. These results show that active trade policies in the RTM country partially solve the classical Prisoner’s Dilemma of the trade policy game
Profits Under Centralized Negotiations: The Efficient Bargaining Case.
No full textMaking use of a Conjectural Variation model, the present note re-examines the subject of the firms' profits ranking under different degrees of market competition in a unionized duopoly with industry-wide Efficient Bargaining (EB). It is shown that, while Cournot-like competition profits are always larger than Bertrand-like ones with separated wage negotiations, an uniform wage bargaining can lead to the appearance of the reversal
Do labour union recognition and bargaining deter entry in a network industry? A sequential game model
No full textThis study considers whether an incumbent firm can find it profitable to recognise a union and bargain over wages and employment, rather than to face a competitive labour market without unions. Using a sequential game model, this analysis shows that an incumbent firm may recognise a union to deter entry when network effects are sufficiently low
Profit raising entry effects in network industries with Corporate Social Responsibility
Get PDFThis note investigates the possibility of profit raising entry in network industries where firms follow Corporate Social Responsibility (CSR) behaviours, showing the interaction between the network and CSR features. In particular, for high levels of the network effect, an incumbent’s profits raising entry effect occurs. The latter result is at odds with the conventional wisdom and shows another channel the preceding literature has so far not explored for the possibility of a profit raising entry
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