Abstract

FANTI, Luciano  and  BUCCELLA, Domenico. Unions and Entry to Traditional and Network Industries. Econ: teor. práct [online]. 2020, n.52, pp.43-67.  Epub June 17, 2020. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/522020/fanti.

The paper analyzes the effects of unionization on the labor market under Right-to-Manage (RTM) and Sequential Efficient Bargaining (SEB) institutions, focusing particularly on the entry of a firm and comparing traditional and network industries. The findings show that under RTM, unions always play a pro-competitive role, while under EB they may become a barrier to entry -in the form of the payment of a fee to obtain a monopoly grant by an authority- into network industries with intense network effects. These results shed light on the importance of there being, on the one hand, unions and different bargaining agendas and on the other, network goods in the shape of industrial competition, with the evident implications of anti-trust and competition policies.

Keywords : sequential efficient bargaining; right-to-manage; firm-union bargaining agenda; entry; network effects.

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