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Economic regions, such as urban agglomerations, face external demand and price shocks that produce income risk. Workers in large and diversified agglomerations may benefit from reduced wage volatility, while firms may outsource the production of intermediate goods and realize benefits from...
Persistent link: https://www.econbiz.de/10005013954
We present an overview of models of long-term self-enforcing labor contracts in which risk sharing is the dominant motive for contractual solutions. A base model is developed which is sufficiently general to encompass the two-agent problem central to most of the literature, including variable...
Persistent link: https://www.econbiz.de/10005766123
In an economy with imperfect labor contracts, differences in the distribution of talent can be an independent source of comparative advantage. I study a world economy with two activities, one in which an individual's contribution to production can be measured accurately and another in which...
Persistent link: https://www.econbiz.de/10005051520
additional bargaining power. Negotiating as a group may also cause more inefficiencies due to bargaining failure, and this may …
Persistent link: https://www.econbiz.de/10010877880
In a recent paper Konrad and Thum (2014) present a model that shows that unilateral pre-commitment reduces the likelihood of agreement in bilateral negotiations over the provision of a public good when parties have private information over their contribution costs. We test the model in a...
Persistent link: https://www.econbiz.de/10010877951
We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income. Since … her bargaining power would go down otherwise more strongly, the wife agrees to have a child only if the husband also …
Persistent link: https://www.econbiz.de/10010948876
The objective of this paper is to investigate the usefulness of non-cooperative bargaining theory for the analysis of … multilateral, multiple issues, non-cooperative bargaining model of water allocation in the Piave River Basin, in the North East of … problem and conduct comparative static analyses to assess sources of bargaining power. Finally, we explore the implications of …
Persistent link: https://www.econbiz.de/10005249457
We study the spillover effects of minimum wages in a laboratory experiment. In a bilateral firm-worker bargaining …
Persistent link: https://www.econbiz.de/10009294100
makers’, understanding of the final stage of the procedure – bargaining in the Conciliation Committee – is crucial. Here, EP … bargaining theory to predict inter-institutional agreements in the Conciliation Committee, it turns out that although …
Persistent link: https://www.econbiz.de/10005765847
two-sector general equilibrium model featuring matching frictions and worker-firm wage bargaining. Workers search for jobs …
Persistent link: https://www.econbiz.de/10005766198