Strategic Bargaining in Search Equilibrium
We introduce strategic wage bargaining in a search equilibrium model. We find that wages respond more an employment and output less to aggreagte shoks than when wages are determined by conventional Nash bargaining. Expectations about the stocks increase the volatility of wages even more.
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|Date of creation:||1996|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway|
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
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