Dynamic Games and Growth Cycles in Unionised Economies

Enrico Marchetti

No 32, Working Papers in Public Economics from Department of Economics and Law, Sapienza University of Roma

Abstract: 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 union’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 Goodwin’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.

Keywords: Trade unions; nonlinear dynamics; differential games; cyclical growth. (search for similar items in EconPapers)
JEL-codes: C00 C72 J51 (search for similar items in EconPapers)
Pages: 39
Date: 1999-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.dipecodir.it/wpsap/data/wp32.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sap:wpaper:wp32

Access Statistics for this paper

More papers in Working Papers in Public Economics from Department of Economics and Law, Sapienza University of Roma
Bibliographic data for series maintained by Luisa Giuriato ().