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Efficient Bargaining with Labor Under-Utilization

Author

Listed:
  • Dehez, Pierre

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • de la Croix, David

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) ; Belgian National Fund for Scientific Research (FNRS))

  • Toulemonde, Eric

    (University of Namur)

Abstract

The standard efficient contract involving a monopolistic firm and a union has always been derived under the assumption that the firm operates efficiently, i.e. it uses fully its labor force. However, nothing constrains the firm to do so and production with under-utilization of labor may actually occur. The implications of ignoring that possibility and the conditions under-utilization effectively occurs are studied.

Suggested Citation

  • Dehez, Pierre & de la Croix, David & Toulemonde, Eric, 1995. "Efficient Bargaining with Labor Under-Utilization," LIDAM Discussion Papers IRES 1995005, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:1995005
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    File URL: https://sites.uclouvain.be/econ/DP/IRES/9505.pdf
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    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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