Wage Bargaining and Employer Objectives
This paper compares union wage bargaining outcomes across different types of employers. Five different employer objectives are discussed: profit, welfare and output maximization, and two specifications of a Leviathan. The model shows that the ordering of the union wage level across employer types depends on the functional form of product demand. With constant elasticity of product demand wage tends to be lowest in the output maximization case, while with a linear product demand wage tends to be lowest under welfare maximization. Copyright Blackwell Publishing Ltd and The Victoria University of Manchester, 2004.
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Volume (Year): 72 (2004)
Issue (Month): 4 (07)
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References listed on IDEAS
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- Rebecca M. Blank, 1993. "Public Sector Growth and Labor Market Flexibility: The United States vs. The United Kingdom," NBER Working Papers 4339, National Bureau of Economic Research, Inc.
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- Maria Paz Espinosa & Changyong Rhee, 1989. "Efficient Wage Bargaining as a Repeated Game," The Quarterly Journal of Economics, Oxford University Press, vol. 104(3), pages 565-588.
- Booth, Alison L, 1984. "A Public Choice Model of Trade Union Behaviour and Membership," Economic Journal, Royal Economic Society, vol. 94(376), pages 883-98, December.
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