Kovenock, Dan; Widdows, Kealoha; Dworkin, James B. - In: Canadian Journal of Economics 24 (1991) 1, pp. 55-69
This paper presents a simple model of sequential wage setting by two unions, each of which is attached to a firm in a duopolistic output market. The authors find that, for a large range of unanticipated downward demand shocks, the equilibrium exhibits downward wage rigidity. Neither union...