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Stakeholders, Bargaining and Strikes

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  • Paola Manzini
  • Clara Ponsatí

Abstract

In this paper they study bilateral bargaining problems with interested third parties, the stakeholders that enjoy benefits upon a bilateral agreement. We explore the strategic implications of this third party involvement. The main finding is that the potential willingness of the stakeholder to make contributions to promote agreement may be the source of severe inefficiency. However, and more surprisingly, for a wide range of parameter values this outcome is better for the stakeholder than if he enters bargaining directly. The results lend support to the tendency towards decentralisation of pay bargaining in the public sector in Europe.[IZA DP No. 395]

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:2753.

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Date of creation: Aug 2010
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Handle: RePEc:ess:wpaper:id:2753

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Keywords: Bargaining; public sector; stakeholders; strikes; labour relations;

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  1. Manzini, Paola & Mariotti, Marco, 2001. "Perfect Equilibria in a Model of Bargaining with Arbitration," Games and Economic Behavior, Elsevier, Elsevier, vol. 37(1), pages 170-195, October.
  2. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
  3. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, Econometric Society, vol. 50(1), pages 97-109, January.
  4. Haller, Hans & Holden, Steinar, 1990. "A letter to the editor on wage bargaining," Journal of Economic Theory, Elsevier, Elsevier, vol. 52(1), pages 232-236, October.
  5. Busch, L-A. & Wen, Q., 1991. "Perfect Equilibria in a Negotiation Model," University of Western Ontario, The Centre for the Study of International Economic Relations Working Papers, University of Western Ontario, The Centre for the Study of International Economic Relations 9108, University of Western Ontario, The Centre for the Study of International Economic Relations.
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Cited by:
  1. Paola Manzini & Clara Ponsati, 2003. "Stakeholders in Bilateral Conflict," Game Theory and Information, EconWPA 0311008, EconWPA.
  2. Mark Fey & Kristopher Ramsay, 2009. "Mechanism design goes to war: peaceful outcomes with interdependent and correlated types," Review of Economic Design, Springer, Springer, vol. 13(3), pages 233-250, September.
  3. Schettkat, Ronald & Yocarini, Lara, 2001. "Education Driving the Rise in Dutch Female Employment: Explanations for the Increase in Part-time Work and Female Employment in the Netherlands, Contrasted with Germany," IZA Discussion Papers 407, Institute for the Study of Labor (IZA).

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