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Prior Restrictions on Bargaining Contract Curves

  • Jan K. Brueckner


    (University of Illinois at Urbana-Champaign)

It is well-known that the efficient-bargain model imposes no general restrictions on the slope of the contract curve. As a result, both upward- and downward-sloping curves are consistent with the theory. Less is known, however, about the effect on the contract curve of changes in the demand and supply variables that underlie employer and union indifference maps and help determine curve's position. To aid empirical researchers, this paper analyzes the effects of demand and supply variables on the position of the contract curve and states the minimal prior restrictions that can be placed on these effects.

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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 10 (2001)
Issue (Month): 1 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-01j50001
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  1. Jan Brueckner & Kevin O'Brien, 1989. "Modeling government behavior in collective bargaining: A test for self-interested bureaucrats," Public Choice, Springer, vol. 63(1), pages 15-41, October.
  2. Orley Ashenfelter & James N. Brown, 1985. "Testing the Efficiency of Employment Contracts," Working Papers 573, Princeton University, Department of Economics, Industrial Relations Section..
  3. Joseph Gyourko & Joseph Tracy, 1989. "Public Sector Bargaining and the Local Budgetary Process," NBER Working Papers 2915, National Bureau of Economic Research, Inc.
  4. Eberts, Randall W & Stone, Joe A, 1986. "On the Contract Curve: A Test of Alternative Models of Collective Bargaining," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 66-81, January.
  5. MaCurdy, Thomas E & Pencavel, John H, 1986. "Testing between Competing Models of Wage and Employment Determination in Unionized Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S3-S39, June.
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