Wen, Quan; Schwartz, Jesse A. - Econometric Society - 2004
negotiation model where the firm can temporarily increase compensation to its employees during wage negotiations. Comparing this … it pays the union during the negotiation of a new wage contract. To understand this regulation, we study a counterfactual …'s temporary wage to upset the union's incentive to strike, decreasing the union's bargaining power, and shrinking the set of …