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Union structure and incentives for innovation
Oleh : Vicente Calabuig,Miguel Gonzalez-Maestre, ELSEVIER (Vicente.Calabuig@uv.es)
Dibuat : 2010-08-25, dengan 1 file
Keyword : Unions, Oligopoly, Innovation
In this paper, we consider the effect of union structure on the adoption of innovation in the context of Cournot duopoly. With a market size large enough, we show that the incentive to innovate is higher under a decentralized union structure (with each firm facing its own independent union)
than under an industry-wide union. However, for a small market size (or, equivalently, for sufficiently drastic potential innovation), the new technology is more likely to be adopted in the presence of a centralized union. This result goes against the conventional view that unionization
harms the incentive to innovate. D 2002 Elsevier Science B.V. All rights reserved.
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Calabuig_Union
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