Gary-Bobo, Robert J.; Jaaidane, Touria - In: European Journal of Political Economy 36 (2014) C, pp. 89-116
We propose a model of strikes in a relational (or self-enforcing) contract framework. The employer has private information about firm profitability, proposes a wage and a bonus, and can outsource part of the production, in each period. The union can either go on strike or reduce the worker's...