Coles, Melvyn G; Hildreth, Andrew K G - In: Review of Economic Studies 67 (2000) 2, pp. 273-93
This paper analyses a strategic bargaining game where the firm may or may not be able to sell out of its inventory of finished goods during a strike. Firms and the union are both risk neutral and have the same discount rate. It is shown that the wage equilibrium corresponds to the axiomatic Nash...