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Revisiting Nash wages negotiations in matching models

Author

Listed:
  • Samir Amine

    (University of Quebec en Outaouais and CIRANO Montréal Canada)

  • Pedro Lages dos santos

    (University of Le Havre)

  • Sylvain Baumann

    (University of Le Havre)

  • Fabrice Valognes

    (University of Caen)

Abstract

In labour economics theory, wage negotiations use to rely on a Symmetric Nash Bargaining Solution. The aim of this study is to show 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 (a same ascertainment has been pointed out by McDonald and Solow (1981)). Finally, we characterize the Kalai-Smorodinsky in the job matching setting.

Suggested Citation

  • Samir Amine & Pedro Lages dos santos & Sylvain Baumann & Fabrice Valognes, 2009. "Revisiting Nash wages negotiations in matching models," Economics Bulletin, AccessEcon, vol. 29(4), pages 3203-3213.
    • Handle: RePEc:ebl:ecbull:eb-09-00746
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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I4-P310.pdf
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    Citations

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    Cited by:

    1. Samir Amine & Sylvain Baumann & Pedro Lages Dos Santos, 2018. "Bargaining Solutions and Public Policies in Matching Models," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-14.
    2. Claus-Jochen Haake & Thorsten Upmann & Papatya Duman, 2020. "Wage Bargaining and Employment Revisited: Separability and Efficiency in Collective Bargaining," CESifo Working Paper Series 8422, CESifo.
    3. Claus‐Jochen Haake & Thorsten Upmann & Papatya Duman, 2023. "Wage bargaining and employment revisited: separability and efficiency in collective bargaining," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(2), pages 403-440, April.
    4. Claus-Jochen Haake & Thorsten Upmann & Papatya Duman, 2019. "The Decomposability of the Nash Bargaining Solution in Labor Markets," Working Papers CIE 128, Paderborn University, CIE Center for International Economics.

    More about this item

    Keywords

    Matching; bargaining solutions; public policy.;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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