Bargaining and the Timing of Investment
The joint determination of the timing of investment and wage bargaining is modeled. Two cases are considered: (1) there is an alternating-offer bargaining game over binding wage contracts and production is possible only when agreement is reached and (2) there are no binding contracts so revenue is divided in period-by-period bargaining postinvestment. Investment can occur earlier in case (2) than in case (1) and the equilibrium in case (2) can Pareto-dominate the equilibrium with binding contracts. These conclusions depend on players' discount factors. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 38 (1997)
Issue (Month): 3 (August)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |