The 1993 Income Policy Agreements (concertazione) reformed wage setting institutions in Italy. This change introduced a relevant ability in absorbing macroeconomic shocks and a curb in inflation- ary expectations, at the cost of stagnant aggregate real wages. The firm-level wage premia remained...

The aim of this paper is to extend Hamilton and Slutsky's (1990) endogenous timing game by including the possibility for players to cooperate. At an initial stage players are assumed to announce both their purpose to play early or late a given duopoly game as well as their intention to cooperate...