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| Gökhan Can |
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| ''Overlapping ownership in a unionized oligopoly'' |
| ( 2025, Vol. 45 No.3 ) |
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| This paper analyzes the effects of overlapping ownership in a unionized Cournot duopoly with decreasing returns to labor. Firms partially internalize rivals' profits, and wage rates are set by firm-level unions that maximize total wage bills. An increase in overlapping ownership always increases producer surplus but lowers total union utility through a reduction in equilibrium wage rates. When products are close substitutes, both consumer surplus and social welfare exhibit a U-shaped relationship with respect to the degree of overlapping ownership. By contrast, when products are not close substitutes, overlapping ownership lowers consumer surplus and social welfare. |
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| Keywords: Overlapping ownership, Unionized oligopoly, Decreasing returns to labor, Cournot competition, Product differentiation |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
D4 - Market Structure and Pricing: General |
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| Manuscript Received : Apr 07 2025 | | Manuscript Accepted : Sep 30 2025 |
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