This paper discusses the features of the labor market outcome in the presence of homogeneous labor and multiple unions. It is argued that contract curve agreements, or at least efficient bargaining among unions, may be improved upon by a solution with differential or non-uniform wage payments for workers affiliated to different unions. The equilibrium solution in terms of employment and/or wage...

a r t i c l e i n f o The present study considers a unionised (nonlinear) duopoly with two different labour market institutions, i.e. efficient bargaining (EB) and right to manage (RTM), to analyse product market stability under quantity competition with trade unions. We show that when the preference of unions towards wages is small, (i) the parametric stability region under RTM is higher than ...