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Collective bargaining under complete information

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  • Diaz-Moreno, Carlos
  • Galdon-Sanchez, Jose E.

Abstract

In this paper, we build and structurally estimate a complete information bargaining model of collective negotiation for Spain. For large firms, the assumption of complete information seems a sensible one, and it matches the collective bargaining environment better than the one provided by private information models. The specification of the model with players having different discount factors allows us to measure their relative bargaining power, a recurrent question in the theory of bargaining. We find that both entrepreneurs and workers have high discount factors, and no evidence that entrepreneurs have bigger bargaining power as usually assumed.

Suggested Citation

  • Diaz-Moreno, Carlos & Galdon-Sanchez, Jose E., 2000. "Collective bargaining under complete information," LSE Research Online Documents on Economics 19337, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:19337
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    File URL: http://eprints.lse.ac.uk/19337/
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Antonio Merlo & Xun Tang, 2009. "Identification of Stochastic Sequential Bargaining Models," PIER Working Paper Archive 09-037, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    2. Antonio Merlo & Xun Tang, 2010. "Identification and Estimation of Stochastic Bargaining Models, Third Version," PIER Working Paper Archive 11-008, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 11 Mar 2011.
    3. Alberto Bayo-Moriones & Jose E. Galdon-Sanchez & Maia Güell, 2004. "Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data," CEP Discussion Papers dp0646, Centre for Economic Performance, LSE.
    4. Antonio Merlo & Xun Tang, 2011. "Identification and Estimation of Stochastic Bargaining Models, Fourth Version," PIER Working Paper Archive 11-035, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 19 Oct 2011.

    More about this item

    Keywords

    Delays; sequential bargaining; structural estimation;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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