Dalen, Dag Morten; Fehr, Nils-Henrik M von der; Moen, … - In: Economic Journal 113 (2003) 487, pp. 525-538
In many regulated industries labour unions are strong and there is clear empirical evidence of labour rent-sharing. In this paper, we study optimal regulation in a model in which wages are determined endogenously by wage bargaining at the firm level. A seemingly robust conclusion, at least when...