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The implications of labour unions in the presence of a merger

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

Authors

Jiyun Cao

Uday Bhanu Sinha



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.

Journal Article Type Article
Publication Date 2020-07
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
APA6 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
DOI https://doi.org/10.1111/manc.12306
Keywords Labour union; Bertrand competition; Cournot competition; Consumer surplus; Merger
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.

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