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Labour unionisation structure and product innovation

Basak, Debasmita; Mukherjee, Arijit

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Authors

ARIJIT MUKHERJEE Arijit.Mukherjee@nottingham.ac.uk
Professor of Industrial Economics



Abstract

This paper contributes to the recently growing literature by examining the effects of different labour unionisation structures on innovation. Using a Cournot duopoly set up, we investigate the effects of centralised and decentralised labour unions on product innovation. We show that if the products are symmetrically differentiated, the incentive for innovation is higher under decentralised labour unions, whereas the innovation incentive can be higher under a centralised labour union if the products are asymmetrically differentiated. Our results show that social welfare is strictly higher under decentralised unions compared to a centralised union.

Citation

Basak, D., & Mukherjee, A. (2018). Labour unionisation structure and product innovation. International Review of Economics and Finance, 55, https://doi.org/10.1016/j.iref.2017.12.013

Journal Article Type Article
Acceptance Date Dec 20, 2017
Online Publication Date Dec 28, 2017
Publication Date May 31, 2018
Deposit Date Jan 10, 2018
Publicly Available Date Mar 29, 2024
Journal International Review of Economics and Finance
Print ISSN 1059-0560
Electronic ISSN 1059-0560
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 55
DOI https://doi.org/10.1016/j.iref.2017.12.013
Keywords Centralised union ; Decentralised union ; Product innovation ; Union utility
Public URL https://nottingham-repository.worktribe.com/output/935684
Publisher URL https://www.sciencedirect.com/science/article/pii/S1059056017309371

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