摘要：This paper analyses the role of transaction costs in the context of incomplete collective bargaining coverage and
endogenous wage regime selection. It is often assumed that firms oppose unions because they reduce profits.
However, in many countries, union recognition is at the discretion of the employer and at the same time, collective
bargaining is one of the main modes of wage-setting. In contrast to the previous literature, I assume that bargaining
itself is no longer costless but rather involves additional resources. Based on a simple theoretical model, the results
show that different wage regimes, unionized and non-unionized, co-exist in general equilibrium if cost structures
between wage regimes are sufficiently different.
