Corruption in union leadership

Chaudhuri, Sarbajit and Ghosh Dastidar, Krishnendu (2014): Corruption in union leadership.

Abstract

This note develops a model of two stage game between a corrupt trade union leader and the management of the firm where the former negotiates for the wage of the workers with the firm. The firm bribes the leader so that he keeps the wage as close as possible to the workers’ reservation wage. The analysis leads to some interesting results which are important for anticorruption policy formulation.

• Item Type: MPRA Paper
• Language: English
• Keywords: Corruption, Union, Firms
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements

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