Abstract
We construct a partial equilibrium model of intra-industry cross-hauling DFI with unionized duopoly, where wages and employment are determined through Nash bargaining between firms and national labor unions. We show that under symmetry, cross-hauling DFI is the unique Nash equilibrium, in which the negotiated wage decreases for every level of employment and each firm's profit increases. Cross-hauling DFI increases (decreases) employment and national welfare if the union is wage (employment) oriented.
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