Models of simultaneous bargaining games are used to analyze the wage outcomes associated with various systems of industrial relations, including bargaining by craft, enterprise, industry, or the whole economy. Union structure is a key determinant with highest wage pressure occurring when unions are organized along craft lines at industry level. Abandonment of centralized bargaining and the splintering of both union and employer organizations into craft and industry units may well lead both to higher aggregate wage pressure and to greater wage inequality. Copyright 1993 by The Economic Society of Australia.
