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Revisiting Nash Wages Negotiations in Matching Models

Author

Listed:
  • Samir Amine
  • Sylvain Baumann
  • Pedro Lages Dos Santos
  • Fabrice Valognes

Abstract

In labour economics theory, wage negotiations use to rely on a SymmetricNash Bargaining Solution. This article aims at showing that this kind of solution may be not relevant. Indeed, in a matching model framework, the comparison with the Kalai-Smorodinsky Solution suggests that a reflection should systematically be made with respect to the negotiation power of each agent.

Suggested Citation

  • Samir Amine & Sylvain Baumann & Pedro Lages Dos Santos & Fabrice Valognes, 2015. "Revisiting Nash Wages Negotiations in Matching Models," CIRANO Working Papers 2015s-29, CIRANO.
    • Handle: RePEc:cir:cirwor:2015s-29
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    File URL: https://cirano.qc.ca/files/publications/2015s-29.pdf
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    References listed on IDEAS

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    1. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
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    3. Kalai, Ehud & Smorodinsky, Meir, 1975. "Other Solutions to Nash's Bargaining Problem," Econometrica, Econometric Society, vol. 43(3), pages 513-518, May.
    4. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    5. Gerber, Anke & Upmann, Thorsten, 2006. "Bargaining solutions at work: Qualitative differences in policy implications," Mathematical Social Sciences, Elsevier, vol. 52(2), pages 162-175, September.
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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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