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Domenico Buccella
 
''Unionized monopoly regulation: strategic trade vs. domestic competition policies''
( 2012, Vol. 32 No.1 )
 
 
This note analyzes the differences between strategic trade and domestic competition policies to regulate a unionized monopoly. In the presence of an industry-wide union, the entry of a domestic competitor does not reduce labor market distortions, while strategic trade policy reduces both labor and product markets distortions. The fixed cost for the domestic entrant and the foreign union sensitivity to employment determine which policy should be implemented to maximize national welfare.
 
 
Keywords: strategic trade policy, competition policy, unionized monopoly.
JEL: F1 - Trade: General
J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining: General
 
Manuscript Received : Mar 07 2012 Manuscript Accepted : Mar 21 2012

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