In the last years many firms in Germany bring off agreements with their workforce (their works councils, respectively), in which they agree on a reduction of (hourly) wages. With the announcement to relocate parts of the production abroad, due to lower wage rates, managers initiate...

In this paper we study an extension of the linear production game (LPG) introduced by Owen (1975). We discuss LPG with players who have flexible resources. Here, flexibility means that a player has a universal resource (e.g. working time) which he can split up (e.g. to execute different tasks)....