The effects of state right-to-work laws on unions Essay

The effects of state right-to-work laws on unions - Essay Example â€Å"By comparison with the voluminous literature on the theories of the firm and consumer, the amount of space devoted to the theory of union is small indeed. This is not accidental; it results from the fact that the behavior of firms and consumers can be easily interpreted as maximizing while that of a union cannot† (ibid, 290). Certainly, since the statement of Reder, there is proof that curiosity and interest in unionism generally collapsed. Nevertheless, because of the significance of trade unions in the activities of the economy, there is a necessity for a systematic framework which can present theoretical concepts into the economic performance of unions to fill the empty spaces that presently exist. As highlighted above, insignificant development has been made in shaping the performance of trade unions since the conventional economic paradigm assumes some form of making the best use of behavior by the entity being investigated. More particularly, the consumer is presupposed to take full advantage of utility, while the company is expected to maximize profit. Neither comparison is relevant to the trade union. Dunlop tried to formulate a framework of the union grounded on the assumption that the wage income of the members of a union is the revenue function and revenues is to be capitalized on rather than profits, as costs to the union are zero. On the contrary, some analysts believed labor unions as a generator of member services which should consider both the proceeds from membership fees and the costs related with the prerequisite of different stages of services. A correlation between an assumption of the consumer and the activities of labor unions has been designed by Cartter i n that the union has an apathy plot which indicates its inclinations between the levels of wages and the level of service (Davis, 1993). In other words, traditional economic assumption demands that the economic player, such