Abstract

Our research analyzes the relationship between labor market institutions (i.e. collective bargaining) and competition in oligopolistic industries.  From a theoretical perspective, this project contributes to the understanding of bargaining in bilateral oligopoly markets; that is markets in which a few sellers face a few buyers. In addition, from a more applied perspective, our work contributes to the understanding of how specific labor market institutions effect the behavior of firms.  For example, what is the effect of exempting labor market organizations from antitrust laws?  What is the effect of making collective wage agreements generally binding? Other applied contributions include the development as well as the estimation of a structural model that allows for simultaneously estimating collective bargaining outcomes and product market competition in a given industry.