EN       DE
 
  Home   Search  
IDSC
 
IZA Newsroom
  Site Map   Contact   Member Login
   

IZA

Logo
Collective Bargaining under Non-Binding Contracts
by Sabien Dobbelaere, Roland Iwan Luttens
(February 2011)

Abstract:
We introduce collective bargaining in a static framework where the firm and its risk-neutral employees negotiate over wages in a non-binding contract setting. Our main result is the equivalence between the non-binding collective equilibrium wage-employment contract and the equilibrium contract under binding risk-neutral efficient bargaining. We also demonstrate that our non-cooperative equilibrium wages and profits coincide with the Owen values of the corresponding cooperative game with the coalitional structure that follows from unionization.
Text: See Discussion Paper No. 5518  




 

© IZA  Impressum  Last updated: 2014-02-16  webmaster@iza.org    |   Bookmark this page    |   Print View