Holm, Pasi; Honkapohja, Seppo; Koskela, Erkki - C.E.P.R. Discussion Papers - 1991
The paper formulates a model of wage determination in which the firm decides on employment after a monopoly union has determined wages. The novelty is to incorporate investment and capital decisions by firms. The subgame-perfect Nash equilibrium and its comparative statics for wages, capital...