Title: The Choice of the Agenda in Labor Negotiations: Efficiency and Behavioral Considerations
Abstract:The labor economics literature has shown that the model, in which wage and employment are negotiated simultaneously, is less frequently used on unionized markets than the less efficient right-to-manag...The labor economics literature has shown that the model, in which wage and employment are negotiated simultaneously, is less frequently used on unionized markets than the less efficient right-to-manage model, in which wage is determined via bargaining and employment determined subsequently and unilaterally by the firm. This paper reports an experiment in which the choice of the bargaining agenda is endogenous within a noncooperative game. We find that participants show a preference for decision authority and choose single-issue bargaining in most cases even though efficiency is lower than in multi-issue bargaining. Furthermore, multi-issue bargaining induces unions to offer smaller payoff shares and leads to a higher conflict rate than in a single-issue bargaining.Read More
Publication Year: 2005
Publication Date: 2005-09-01
Language: en
Type: article
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot