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Müller, Julia; Upmann, Thorsten - 2013

This paper contributes to the analysis of central vs. decentral (firm-level) labour market negotiations. We argue that … during negotiations on a central scale employers and employees plausibly take output market effects into account, while they … behave competitively during firm-level negotiations. Assuming that in both cases the labour market conflict is settled …

Persistent link: https://www.econbiz.de/10010210111

Wage bargaining and employment revisited : separability and efficiency in collective bargaining

Haake, Claus-Jochen; Upmann, Thorsten; Duman, Papatya - 2020

We analyse the two-dimensional Nash bargaining solution (NBS) deploying a standard labour market negotiations model … implications for actual negotiations, as it allows for the decomposition of a multi-dimensional bargaining problem into simpler … problems - and thus helps to facilitate real-world negotiations. …

Persistent link: https://www.econbiz.de/10012244506

Compensation and bargaining with entrpreneurship as the outside option

Koskela, Erkki; Stenbacka, Rune - 2000

We analyze the impact of entrepreneurship as an outside option on compensation contracts between a principal and an agent with bargaining power. In the first stage the parties bargain over the base wage and the profit share. In the second stage the principal determines the capital investment and...

Persistent link: https://www.econbiz.de/10009781591

The bargaining trap

Schweighofer-Kodritsch, Sebastian - 2022

I revisit the Rubinstein (1982) model for the classic problem of price haggling and show that bargaining can become a "trap," where equilibrium leaves one party strictly worse off than if no transaction took place (e.g., the equilibrium price exceeds a buyer's valuation). This arises when one...

Persistent link: https://www.econbiz.de/10013358929

Why are there strikes?

Chun, Kyung Nok; Schaller, Zachary; Skaperdas, Stergios - 2020

Strikes, just as other types of conflict, used to be difficult to explain from an economic perspective. Initially, it was thought that they were a result of mistakes or irrationality. Then, during the 1980s an explosion of research brought asymmetric information to prominence as a significant...

Persistent link: https://www.econbiz.de/10012299563

Capital structure, wage bargaining and employment

Koskela, Erkki; Stenbacka, Rune - 2000

commitment value as a wage-moderating effect for firms facing unions in bilateral wage negotiations. Finally, some implications …

Persistent link: https://www.econbiz.de/10009781550

The political economy of collective bargaining

Palokangas, Tapio K. - 2002

We construct a political equilibrium in which employers and labour unions bargain over labour contracts, wage-earners and profit-earners lobby the government for taxation and labour market regulation, and labour market legislation must be accepted by the majority of voters. We show that the...

Persistent link: https://www.econbiz.de/10011409824

Optimal factor income taxation in the presence of unemployment

Koskela, Erkki; Schöb, Ronnie - 2000

According to conventional wisdom internationally mobile capital should not be taxed or should be taxed at a lower rate than labour. An important underlying assumption behind this view is that there are no market imperfections, in particular that labour markets clear competitively. At least for...

Persistent link: https://www.econbiz.de/10009781554

Strategic wage setting and coordination frictions with multiple applications

Gautier, Pieter (contributor); … - 2004

We examine wage competition in a model where identical workers choose the number of jobs to apply for and identical firms simultaneously post a wage. The Nash equilibrium of this game exhibits the following properties: (i) an equilibrium where workers apply for just one job exhibits unemployment...

Persistent link: https://www.econbiz.de/10002514786

Union bargaining power and product innovation : relevance of the preference function

Basak, Debasmita; Hoefele, Andreas; Mukherjee, Arijit - 2014

We show the effects of the bargaining power of labour unions on product innovation under decentralised and centralised wage bargaining. In this context, we show the implications of preference function, which affects the market size. A higher union bargaining power increases innovation if...

Persistent link: https://www.econbiz.de/10010413720