Dehez, Pierre; de la Croix, David; Toulemonde, Eric - Institut de Recherche Économique et Sociale (IRES), … - 1995
The standard efficient contract involving a monopolistic firm and a union has always been derived under the assumption that the firm operates efficiently, i.e. it uses fully its labor force. However, nothing constrains the firm to do so and production with under-utilization of labor may actually...