In this paper, we explore the influence of union structure and wage pricing\nstrategies on the welfare under a mixed oligopoly which has a public firm\nwith budget constraint. We showed that, the total utilities of the decentralized\nunions are higher than the utility of the centralized union under mixed duopoly\nif the centralized union charges a uniform wage and the productivity\ndifference is large. The government should restrict the centralized union\nformed by the public and the private firm to charge discriminatory wages,\nand to avoid the improper use of the monopoly power of the labour union.
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