Wage bargaining and vertical differentiation
This article intends to apply the Nash Bargaining solution to wage setting in a vertically differentiated oligopoly and to study its welfare effects. The market outcome crucially depends on the bargaining power attributed to the agents. I show that the resulting wage bargaining structure is likely to lead to another source of distortion that adds to the classical one derived by oligopoly pricing and quality choice.
(This abstract was borrowed from another version of this item.)
Volume (Year): 54 (2007)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.springer.com/economics/journal/12232|
|Order Information:||Web: http://link.springer.de/orders.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
- Thomson, W., 1989.
"Cooperative Models Of Bargaining,"
RCER Working Papers
177, University of Rochester - Center for Economic Research (RCER).
- Thomson, William, 1994. "Cooperative models of bargaining," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 35, pages 1237-1284 Elsevier.
- Coles, Melvyn G & Hildreth, Andrew, 1996.
"Wage Bargaining, Inventories, and Union Legislation,"
CEPR Discussion Papers
1361, C.E.P.R. Discussion Papers.
- Coles, Melvyn G & Hildreth, Andrew K G, 2000. "Wage Bargaining, Inventories, and Union Legislation," Review of Economic Studies, Wiley Blackwell, vol. 67(2), pages 273-93, April.
- Webster, Allan, 1993. "The Skill and Higher Educational Content of UK Net Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(2), pages 141-59, May.
- Enrico Pennings, 2004.
"Optimal Pricing And Quality Choice When Investment In Quality Is Irreversible,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 52(4), pages 569-589, December.
- Enrico Pennings, . "Optimal pricing and quality choice when investment in quality is irreversible," Working Papers 206, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
- Dowrick, Steve, 1989. "Union-Oligopoly Bargaining," Economic Journal, Royal Economic Society, vol. 99(398), pages 1123-42, December.
- Jean Gabszewicz & Alessandro Turrini, 1999.
"Workers' Skills and Product Selection,"
Programme National Persée, vol. 50(3), pages 383-391.
- GABSZEWICZ, Jean & TURRINI, Alessandro, 1999. "Workers’skills and product selection," CORE Discussion Papers 1999006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- GABSZEWICZ, Jean & TURRINI, Alessandro, . "Workers'skills and product selection," CORE Discussion Papers RP -1394, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Brander, James A. & Spencer, Barbara J., 1988. "Unionized oligopoly and international trade policy," Journal of International Economics, Elsevier, vol. 24(3-4), pages 217-234, May.
- Aoki, Reiko & Prusa, Thomas J., 1997. "Sequential versus simultaneous choice with endogenous quality," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 103-121, February.
- Dhillon, Amrita & Petrakis, Emmanuel, 2002. "A generalised wage rigidity result," International Journal of Industrial Organization, Elsevier, vol. 20(3), pages 285-311, March.
- Joan Martín-Montaner & Vicente Ríos, 2002. "Vertical specialization and intra-industry trade: The role of factor endowments," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 340-365, June.
- Naylor, Robin, 1998. "International trade and economic integration when labour markets are generally unionised," European Economic Review, Elsevier, vol. 42(7), pages 1251-1267, July.
- BOCCARD, Nicolas & WAUTHY, Xavier, 2009. "Regulating quality by regulating quantity : a case against minimum quality standards," CORE Discussion Papers 2009052, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
When requesting a correction, please mention this item's handle: RePEc:spr:inrvec:v:54:y:2007:i:1:p:35-52. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.