Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46927 
Year of Publication: 
1997
Citation: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1997
Series/Report no.: 
Kiel Working Paper No. 799
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
This paper analyzes wage competition between national trade unions caused by the international mobility of capital. Perfect capital mobility leads to a Bertrand result for the outcome of wage competition: A pure strategy equilibrium implies full employment in all countries. It is shown that such an equilibrium exists for a sufficiently large number of countries. As extensions of the basic model, decreasing returns to scale and capital adjustment costs are introduced.
Subjects: 
capital mobility
trade unions
JEL: 
F2
J5
Document Type: 
Working Paper
Document Version: 
Digitized Version

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