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Bargaining and the Joint-Cost Theory of Strikes: An Experimental Study

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  • Sopher, Barry

Abstract

This article reports on an experiment that is designed to test predictions about the frequency of disagreement (strikes) in games with complete information. An empirical test of the "joint-cost" theory, which relates strike activity to the marginal cost of striking, is based on a set of "shrinking pie" games in which subjects bargain in consecutive periods over how to divide a sum of money. Strike activity is a frequent occurrence in these games and, moreover, does not disappear over time. The joint-cost theory receive some support, indicating that further tests may be useful. Copyright 1990 by University of Chicago Press.

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  • Sopher, Barry, 1990. "Bargaining and the Joint-Cost Theory of Strikes: An Experimental Study," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 48-74, January.
  • Handle: RePEc:ucp:jlabec:v:8:y:1990:i:1:p:48-74
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    Cited by:

    1. Archontis L. Pantsios & Solomon W. Polachek, 2017. "How Asymmetrically Increasing Joint Strike Costs Need Not Lead to Fewer Strikes," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(2), pages 149-161, June.
    2. Ahmet Ozkardas & Agnieszka Rusinowska, 2012. "Wage bargaining with discount rates varying in time under exogenous strike decisions," Documents de travail du Centre d'Economie de la Sorbonne 12013, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, Elsevier.

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