Tsuyoshi Shinozaki, Makoto Tawada and Mitsuyoshi Yanagihara
The aim of this paper is to investigate whether a Nash equilibrium of a two-country trading economy is symmetry-breaking or not.
Abstract
Purpose
The aim of this paper is to investigate whether a Nash equilibrium of a two-country trading economy is symmetry-breaking or not.
Design/methodology/approach
The approach to tackle this topic is a theoretical treatment by the general equilibrium trade theory and game theory.
Findings
If each government's domestic policy serving private production is diminishing to the private production scale, the Nash equilibrium is not symmetry-breaking.
Originality/value
In the existing study of Chatterjee (2017), a similar result is derived by focusing on the properties of each country's GDP function. The authors, however, consider an economy where each country's PPF is strictly concave and show that the Nash equilibrium uniquely exists and this equilibrium is symmetry.
Details
Keywords
Binh Tran-Nam, Cuong Le-Van, Van Pham-Hoang and Thai-Ha Le
In their now classic book What Do Unions Do? Freeman and Medoff (1984) open their discussion as follows (p. 3): “Trade unions are the principal institution of workers in modern…
Abstract
In their now classic book What Do Unions Do? Freeman and Medoff (1984) open their discussion as follows (p. 3): “Trade unions are the principal institution of workers in modern capitalistic societies. For over 200 years, since the days of Adam Smith, economists and other social scientists, labor unionists, and businessmen and women have debated the social effects of unionism. Despite the long debate, however, no agreed-upon answer has emerged to the question: What do unions do?” In the remainder of the book, the authors provide a coherent answer to this question and, as a result, What Do Unions Do? has become firmly established as a cornerstone for the economic analysis of labor unions. However, since the first publication of the book, developments have emerged that are inconsistent with Freeman and Medoff's predictions regarding the effectiveness of unions. One such development, for example, is the precipitous decline in union density in many countries around the world; another is the growing importance of, and interest in, alternative forms of employee representation.