Using longitudinal data for major league baseball players, this paper estimates the effects of eligibility for free agency or arbitration on compensation and contract duration. Becaus e eligibility is based on experience and better players are kept longe r, a fixed effects approach is used....

Using union contract and industry wage survey data, this article examines the effect of discounting on cooperative bargaining behavior by unions and firms. Game theory predicts that higher discount rates raise the temptation to defect from cooperation. Measures of cooperative behavior include...

This paper shows that, under constant returns to scale and free entry, customer discrimination, unlike employer or employee discrimination, can cause long-run wage differentials. The general equilibrium impact of affirmative action policies on wages, productivity, and unemployment is contrasted...