period and firms react by choosing employment, and (ii) for the commitment equilibria where the union can precommit to the … entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the … employment and wages only in the no-commitment case, i.e., the higher the relevance of adjustment costs the higher the wage and …

period and firms react by choosing employment, and (ii) for the commitment equilibria where the union can precommit to the … entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the no …-commitment case, decreases with adjustment costs in both models. Moreover adjustment costs affect the long run values of employment …

period and firms react by choosing employment, and (ii) for the commitment equilibria where the union can precommit to the … entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the … employment and wages only in the no-commitment case, i.e., the higher the relevance of adjustment costs the higher the wage and …

This paper analyzes the implications of bilateral bargaining over wages and employment between a producer and a union …. Wages and aggregate employment levels are set according to an efficient (Nash) bargaining agreement while the commodity … lower output and employment. Moreover, the induced nominal equilibrium wage is not always a monotonically increasing …