Labour unionisation structure and product innovation

Basak, Debasmita; Mukherjee, Arijit

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: Dec 29, 2018
• 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
• Contract Date: Jan 10, 2018