Optimal Strategies in Unionized Oligopoly and Inward FDI

In a union-oligopoly context, we interpret the optimal equilibria may arise from the implementation of any possible policies of a benevolent social planner in the labour market. The applied policies may contradict or correspond with unions ’ and firms’ objectives, while in other cases institutional arrangements of labour market appear to be inefficient to induce or deter FDI and thus social planner must search for alternative strategic devices. Given the complexity of the model, which must be solved computationally to obtain results, there are several outcomes depending on the values of the parameters.