Union Games: Technological Unemployment
AbstractGiven a production economy, we define a trade union game by considering strategic behavior on factor supplies. We refer to the Nash equilibria of this game as trade union equilibria. First we analyze situations under which unemployment of factors are supported as trade union equilibria. The degree of unemployment depends on technological conditions. In this line, we suggest a source of unemployment which differs from the usual sources provided in the related literature. Then, we state a limit result which shows that when the market power of trade unions decreases the corresponding sequence of trade union equilibria converges to the walrasian equilibrium, that is, to full employment of factors.
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Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2004/45.
Length: 28 pages
Date of creation: 2004
Date of revision:
Trade Union Games; unemployment; walrasian equilibrium; manipulability.;
Other versions of this item:
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-13 (All new papers)
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