Bandyopadhyay, Subhayu; Bandyopadhyay, Sudeshna Champati - In: Review of International Economics 7 (1999) 1, pp. 153-61
Two exporting firms (domestic and foreign) are considered which are symmetric in all respects except that one is unionized while the other faces a competitive labor market. Under free trade the unionized firm has the lower market share. Paradoxically, in the policy equilibrium, the unionized...