Dynamic Games and Growth Cycles in Unionised Economies
In this paper we integrate the dynamic models formulated by the microeconomic theory of trade unions and the differential games approach. We demonstrate that the results of the dynamic monopoly union model, elaborated by Kidd and Oswald (1987) and Jones and McKenna (1994), can be obtained as solutions of a Stackelberg differential game between firms and unions under particular assumptions on unionâ€™s membership dynamic. We also develop a Nash differential game whose solutions imply a cycle in wage share of product and employment rate which resembles Goodwinâ€™s (1967) cyclical growth path. This result is obtained by use of the Hopf theorem on local bifurcations, under particular hypotheses on the membership dynamics.
|Date of creation:||Oct 1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 6 49766353
Fax: +39 6 4462040
Web page: http://www.dipecodir.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paz Espinosa, Maria & Rhee, Changyong, 1989. "Efficient Wage Bargaining as a Repeated Game," The Quarterly Journal of Economics, MIT Press, vol. 104(3), pages 565-88, August.
- Jones, Stephen R G & McKenna, C J, 1994. "A Dynamic Model of Union Membership and Employment," Economica, London School of Economics and Political Science, vol. 61(242), pages 179-89, May.
- repec:cup:cbooks:9780521484619 is not listed on IDEAS
- Gottfries, Nils & Horn, Henrik, 1987. "Wage Formation and the Persistence of Unemployment," Economic Journal, Royal Economic Society, vol. 97(388), pages 877-84, December.
- Chiarini Bruno, 1997. "A Dynamic Union Model with Pensioners Membership," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 147-162.
- Marchetti Enrico, 1998. "Cooperative and Noncooperative Differential Games between Firms and Trade Unions," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 223-242.
- Jones, Stephen R. G., 1987. "Union membership and employment dynamics," Economics Letters, Elsevier, vol. 25(2), pages 197-200.
When requesting a correction, please mention this item's handle: RePEc:sap:wpaper:wp32. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luisa Giuriato)
If references are entirely missing, you can add them using this form.