Bargaining Structures and Agendas in an Unconstrained Hotelling Model

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Title:Bargaining Structures and Agendas in an Unconstrained Hotelling Model
Creators:
Buccella, Domenico
Journal or Publication Title:
Czech Economic Review, 8, 3, pp. 149-168
Uncontrolled Keywords:Spatial competition, bargaining, firms’ locations, unionized oligopoly

Abstract

The present paper investigates the effects of bargaining structures and agendas on the quality differentiation/location in the final-goods market. The framework is a unionized duopoly industry in the context of an unconstrained Hotelling linear city model. The presence of labor union(s) and the bargaining processes (i.e., centralized vs. decentralized structure; right-to-manage vs. participatory framework agenda) change the locational incentives of the firms with respect to the case of exogenous production costs. The results reveal that the effect of centralization on the two bargaining agendas is diametrically opposed. More specifically, in the participatory framework, centralization is a centrifugal force, while it is a centripetal force in the right-to-manage. The social welfare consequences are also briefly discussed.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=AB892370-042D-41EB-A9EB-F341B6C1A7CF&articleid=850636A7-C83E-492C-B3F8-0B13DC3AA562

Title:Bargaining Structures and Agendas in an Unconstrained Hotelling Model
Creators:
Buccella, Domenico
Uncontrolled Keywords:Spatial competition, bargaining, firms’ locations, unionized oligopoly
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:Czech Economic Review
Volume:8
Number:3
Page Range:pp. 149-168
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:8345
Item Type:Article
Deposited On:08 Jan 2015 16:31
Last Modified:08 Jan 2015 15:31

Citation

Buccella, Domenico (2014) Bargaining Structures and Agendas in an Unconstrained Hotelling Model. Czech Economic Review, 8 (3). pp. 149-168. ISSN 1802-4696

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