Institutional intervention theories, Managerial Economics

The institutional intervention theories

Collective bargaining provides an example of what is sometimes called bi- lateral monopoly; the trade union being the monopolist supplier and the employers' association the monopolist buyer of a particular kind of labour.

These who support the Bargaining strength of the trade union concerned, so that, differences in wages in different occupations are the result of the differences of the strength of the respective trade unions.

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