Holdout threats of the union during wage bargaining
We investigate a wage bargaining between the union and the firm where the parties' preferences are expressed by varying discount rates and the threat of the union is to be on go-slow instead of striking. First, we describe the attitude of the union as hostile or altruuistic where a hostile union is on go-slow in every disagreement period and an altruistic union never threatens the firm and holds out in every disagreement period. Then we derive the subgame perfect equilibrium of the bargaining when the union's attitude is determined exogenously. Furthermore, we determine necessary conditions for the extreme equilibrium payoffs of both parties independently of the union's attitude and calculate the extreme payoffs for a particular case of discount rates.
|Date of creation:||Sep 2014|
|Publication status:||Published in Documents de travail du Centre d'Economie de la Sorbonne 2014.72 - ISSN : 1955-611X. 2014|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01112402|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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