Prot-Sharing, Bertrand Competition and Monopoly Unions: A Note.

This paper studies a strategic aspect of prot-sharing in an oligopolistic industry with a monopoly union. Whenever a uniform prot share exists in the industry, we show that a union that values the per worker remuneration positively, may have incentives to reduce industry employment, decreasing thus total output and causing total prots to increase. Thus, we show that prot-sharing may lead to higher prots for such an industry even if productivity eects are absent