IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v20y1974i6p960-970.html
   My bibliography  Save this article

A Model of Wage Bargaining Involving Negotiations and Sanctions

Author

Listed:
  • Raphael Trifon

    (Technion-Israel Institute of Technology, Haifa)

  • Moshe Landau

    (Technion-Israel Institute of Technology, Haifa)

Abstract

This paper presents a model of wage bargaining between an employer and a labour union (or alternatively of collective bargaining). The bargaining is conducted by comparing a claim and an offer at fixed time intervals. These are generated by the respective parties from reaction functions that allow for past submissions and anticipation of future positions. The reaction functions themselves change from one step to the next, and have to be worked out in a sequence. Consequently, the outcome of the process cannot be guessed at the outset. It is assumed throughout that labour slows down production as a sanction, with a total strike as an extreme possibility. Labour may or may not suffer wage losses proportional to the severity of its sanction. Finally, a bluffing strategy is introduced for both parties. The model can serve as a basis for numerical simulation of wage conflicts, and sensitivity tests of behavioural parameters.

Suggested Citation

  • Raphael Trifon & Moshe Landau, 1974. "A Model of Wage Bargaining Involving Negotiations and Sanctions," Management Science, INFORMS, vol. 20(6), pages 960-970, February.
    • Handle: RePEc:inm:ormnsc:v:20:y:1974:i:6:p:960-970
    DOI: 10.1287/mnsc.20.6.960
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.20.6.960
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.20.6.960?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Chunding & Whalley, John, 2014. "China's potential future growth and gains from trade policy bargaining: Some numerical simulation results," Economic Modelling, Elsevier, vol. 37(C), pages 65-78.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:20:y:1974:i:6:p:960-970. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.