Profitable parallel trade in unionized markets

Why do producers often accept parallel trade in some markets such as automobiles, clothing, toys and consumer electronics? This paper points to a new factor, viz., the wage reducing effect of parallel trade in unionized markets, which may make parallel trading beneficial to a manufacturer. The benefit of parallel trade disappears in our analysis when such factor is removed. Copyright Springer-Verlag 2012

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Year of publication:	2012
Authors:	Mukherjee, Arijit ; Zhao, Laixun
Published in:	Journal of Economics. - Springer. - Vol. 107.2012, 3, p. 267-276
Publisher:	Springer
Subject:	Labor union \| Parallel trade

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010863136