The implications of labour unions in the presence of a merger

Cao, Jiyun; Mukherjee, Arijit; Sinha, Uday Bhanu

Abstract

It is usually believed that the presence of labour unions is detrimental for the consumers since it raises wage. We show that this view may not be true if we endogenise the impacts of labour unions on firms' corporate strategies such as merger and acquisition. The presence of labour unions may benefit the consumers by deterring merger.

Citation

Cao, J., Mukherjee, A., & Sinha, U. B. (2020). The implications of labour unions in the presence of a merger. Manchester School, 88(4), 575-583. https://doi.org/10.1111/manc.12306

• Journal Article Type: Article
• Acceptance Date: Oct 25, 2019
• Online Publication Date: Nov 29, 2019
• Publication Date: 2020-07
• Deposit Date: Nov 4, 2019
• Publicly Available Date: Nov 30, 2021
• Journal: The Manchester School
• Print ISSN: 1463-6786
• Electronic ISSN: 1467-9957
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 88
• Issue: 4
• Pages: 575-583
• DOI: https://doi.org/10.1111/manc.12306
• Keywords: Labour union; Bertrand competition; Cournot competition; Consumer surplus; Merger
• Public URL: https://nottingham-repository.worktribe.com/output/3048129
• Publisher URL: https://onlinelibrary.wiley.com/doi/full/10.1111/manc.12306
• Additional Information: This is the peer reviewed version of the following article: Cao, J, Mukherjee, A, Sinha, UB. The implications of labour unions in the presence of a merger. The Manchester School. 2020; 88: 575– 583, which has been published in final form at https://doi.org/10.1111/manc.12306. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.