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Full-Text Articles in Industrial Organization
Import Quotas And Entry Deterrence, Neil Campbell
Import Quotas And Entry Deterrence, Neil Campbell
Neil Campbell
Using a simple version of the Milgrom and Roberts entry deterrence model, it is shown that adjusting a quota so that a greater volume of imports is allowed, can facilitate entry into the domestic industry. That is, the easing of a quota, can cause the domestic incumbent to shift from deterring entry to accommodating entry.
Import Competition And Worker Productivity In Unionized Firms, Neil Campbell, Neil Vousden
Import Competition And Worker Productivity In Unionized Firms, Neil Campbell, Neil Vousden
Neil Campbell
This paper analyzes the effects of trade and labor market liberalization on wages and worker productivity/effort in a domestic unionized firm with firm-union bargaining over wages and effort. It is shown that both types of liberalization will induce a 'cold shower effect' (a rise in effort) if the union's objective function is more heavily weighted towards employment. However, the welfare effects of the two policies can differ markedly. The paper also identifies a separate productivity cost of production associated with the distortionary effect of protection on worker effort.