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Collective Bargaining and Walrasian Equilibrium

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  • Penta, Antonio

Abstract

This paper contributes to the research agenda on non-cooperative foundations ofWalrasian Equilibrium. A class of barganing games in which agents bargain over prices and maximum trading con- straints is considered: It is proved that all the Stationary Sub- game Perfect Equilibria of these games implement Walrasian al- locations as the bargaining frictions vanish. The main novelty of the result is twofold: (1) it holds for any number of agents; (2) it is robust to di¤erent speci�cations of the bargaining process.

Suggested Citation

  • Penta, Antonio, 2007. "Collective Bargaining and Walrasian Equilibrium," MPRA Paper 10260, University Library of Munich, Germany, revised Sep 2007.
    • Handle: RePEc:pra:mprapa:10260
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    strategic bargaining; Walrasian Equilibrium;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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