The paper develops a theory of the firm’s capital-labor ratio unionization of its labor force. Using explicit game theoretical solutions to union-firm bargaining, it is demonstrated how the firm’s product market power interacts with the inputs allocation rule in such a way that unionism...

In a general equilibrium framework, this paper tries to reproduce an important stylized fact of real economies : firms set prices under demand uncertainty while consumption decisions are taken when prices are already known. Under these conditions, there is place for a quantity rationing...

The paper uses the recent union-firm bargaining literature for a theoretical appraisal of the positive relationship found in some empirical studies between union wages and the constituents of firm’s monopolistic rents. The paper assesses that this relationship depends on many factors, such as...

This paper applies a production function approach to the analysis of imperfections in output and factor markets and develops a test of efficient bargaining for wage and employment determination. Based on a translog function defined at the firm level, estimates for the Belgian chemical industry...

The paper analyses the consequence of introducing (decentralized) union-firm bargaining in the theory of the firm under uncertainty. Contrary to earlier beliefs that short-run output does not change with additive uncertainty, it is shown that risk preference may matter when union-firm bargaining...

Traditional analyses of the labor-manages firm, whose objective is assumed to be the maximization of earnings per worker, have shown that this economic organization must exhibit "perverse" behavior. Recently, it has been claimed that, entry of new workers into the firm is allowed only when they...