In a unionized Cournot duopoly under decentralized wage bargaining regime, we analyzed undeclared labour in a matrix game. We reveal the opportunity cost between taxation and contributions for social insurance that firms and unions face, while we examine all relevant possible unilateral...

Undeclared labour constitutes a complex phenomenon that has not yet been analyzed within I/O framework. In a unionized duopoly under decentralized wage bargaining context, we reveal the opportunity cost that exists between the taxation and the contributions for social insurance. Comparing to a...

In a union-oligopoly context, we interpret the optimal equilibria may arise from the implementation of any possible policies of a benevolent social planner in the labour market. The applied policies may contradict or correspond with unions' and firms' objectives, while in other cases...

In a duopoly where firms are competing by adjusting their quantities and the wages are exogenously determined, we analyze the undeclared labour phenomenon and its side effects in product market. Our analysis focuses on the opportunity cost between the taxation and the contributions for social...

In a union-duopoly strategic context, we explore the endogenous determination and the effects of the unionization structure in a market facing the possibility of inward foreign direct investments (FDI). We focus our analysis on the role of the reservation wages in home and foreign market and...

This paper analyzes a Stackelberg model where firms choose their objective functions (profit or revenue) in order to achieve maximum payoff. The objective of the present work is to demonstrate that depending on the unit cost of production, firms make either asymmetric choices of objectives (low...

We examine both quantity and price competition between a number of profit-maximizing firms and a state-controlled enterprise (SCE). The objective function of the latter is strategically defined by a welfare-maximizing government which weighs the SCE’s profits relative to consumer surplus and...