TY - RPRT AU - Manzini, Paola AU - Ponsatí, Clara TI - Stakeholders, Bargaining and Strikes PY - 2001/Nov/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 395 UR - https://www.iza.org/index.php/publications/dp395 AB - We study bilateral bargaining problems with interested third parties, the stakeholders that enjoy benefits upon a bilateral agreement. We explore the strategic implications of this third party involvement. Our main finding is that the potential willingness of the stakeholder to make contributions to promote agreement may be the source of severe inefficiency. However, and more surprisingly, for a wide range of parameter values this outcome is better for the stakeholder than if he enters bargaining directly. Our results lend support to the tendency towards decentralisation of pay bargaining in the public sector in Europe. KW - stakeholders KW - public sector KW - Bargaining KW - labour relations KW - strikes ER -