Jafarey, Saqib; Kaskarelis, Yannis; Miaouli, Natasha - In: Ekonomia 2 (1998) 1, pp. 73-89
This paper uses a dynamic monopoly union model to analyse the joint determination of wages, employment and investment in the absence of binding contracts. The union maximizes a utilitarian utility function while the firm faces a neoclassical investment problem with adjustment costs....