This paper examines the effects of industrial action and the impact of strike costs on the industrial action activity. Germany is characterised by having little industrial action. Within the framework of a wage bargaining model, it is argued that higher industrial action costs for the union lead...

Die Forderung der CDU/CSU-Mittelstandsvereinigung nach der Einführung einer obligatorischen Urabstimmung vor dem Beginn eines Streiks wird von Dr. Dieter Hundt, Präsident der Bundesvereinigung der Deutschen Arbeitgeber abgelehnt: "Der Beschluss der CDU/CSU-Mittelstandsvereinigung zur...

Judicial decisions concerning industrial action have strengthened the right to strike and made lockouts virtually impossible. Employers respond to such a shift in the power on the labour market with relocations and power on the goods market. In addition the trade unions are threatened by...

A strike insurance is integrated into a model based on one-sided private information of the firm. It is shown that the strike insurance will increase the dispute level if payments to the insurance are lump-sum or if payments from the insurance are proportional to wages. However, if wages affect...

We study bilateral bargaining problems with interested third parties, the stakeholders that enjoy benefits upon a bilateral agreement. We explore the strategic implications of this third party involvement. Our main finding is that the potential willingness of the stakeholder to make...