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Stakeholders, Bargaining and Strikes

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  • Manzini, Paola

    ()
    (University of St. Andrews)

  • Ponsatí, Clara

    ()
    (Universitat Autònoma de Barcelona)

Abstract

We 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. Our 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. Our results lend support to the tendency towards decentralisation of pay bargaining in the public sector in Europe.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 395.

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Length: 42 pages
Date of creation: Nov 2001
Date of revision:
Handle: RePEc:iza:izadps:dp395

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

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References

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  1. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
  2. 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 9108, University of Western Ontario, The Centre for the Study of International Economic Relations.
  3. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
  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. 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.
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Cited by:
  1. 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).
  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. Paola Manzini & Clara Ponsati, 2003. "Stakeholders in Bilateral Conflict," Game Theory and Information, EconWPA 0311008, EconWPA.

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