Wage and price formation are analysed in a general equilibrium model combining wage bargaining, monopolistic competition, stochastic demand, and technological constraints. The alternative implications of "efficient" and "right-to-manage" models of bargaining are studied. The price-cost margin is...

This paper examines the introduction of monopolistic competition into wage bargaining models : in addition to capital-labour substitution, we also consider a cost-push effect. The right-to-manage model requires strong restrictions on the objective functions and leads to problematic conclusions...

This paper examines the introduction of monopolistic competition into wage bargaining models: in addition to capital-labour substitution, we also consider a cost-push effect. The right-to-manage model requires strong restrictions on the objective functions and leads to problematic conclusions...