In an international duopoly with two markets and two ports, this paper investigates the role of dockworkers unionisation in determining the endogenous choice by governments of port ownership structure. While private ports maximise profits, public ports maximise domestic welfare and face a budget constraint, which is binding when unions are sufficiently wage-oriented and shipping costs are not too high. State-owned ports appear as the most likely equilibrium result although all possible configurations may arise in equilibrium, including an asymmetric structure with a state-owned port and a private port. Country size asymmetry, product differentiation and price competition in product markets favour the rise of a joint public ownership structure of ports. This structure also maximises domestic welfare when unions are wage-oriented.
Unionised dockworkers and port ownership structure in an international oligopoly
Nicola Meccheri
2024-01-01
Abstract
In an international duopoly with two markets and two ports, this paper investigates the role of dockworkers unionisation in determining the endogenous choice by governments of port ownership structure. While private ports maximise profits, public ports maximise domestic welfare and face a budget constraint, which is binding when unions are sufficiently wage-oriented and shipping costs are not too high. State-owned ports appear as the most likely equilibrium result although all possible configurations may arise in equilibrium, including an asymmetric structure with a state-owned port and a private port. Country size asymmetry, product differentiation and price competition in product markets favour the rise of a joint public ownership structure of ports. This structure also maximises domestic welfare when unions are wage-oriented.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
