Holdout threats of the union during wage bargaining

Ahmet Ozkardas () and Agnieszka Rusinowska
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Ahmet Ozkardas: Turgut Özal Üniversitesi et Centre d'Economie de la Sorbonne, https://centredeconomiesorbonne.univ-paris1.fr

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We investigate a wage bargaining between the union and the firm where the parties' preferences are expressed by varying discount rates and the threat of the union is to be on go-slow instead of striking. First, we describe the attitude of the union as hostile or altruuistic where a hostile union is on go-slow in every disagreement period and an altruistic union never threatens the firm and holds out in every disagreement period. Then we derive the subgame perfect equilibrium of the bargaining when the union's attitude is determined exogenously. Furthermore, we determine necessary conditions for the extreme equilibrium payoffs of both parties independently of the union's attitude and calculate the extreme payoffs for a particular case of discount rates

Keywords: Union; firm bargaining; varying discount rates; holdout threats; go-slow threats; subgame perfect equilibrium (search for similar items in EconPapers)
JEL-codes: C78 J52 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2014-09
New Economics Papers: this item is included in nep-gth
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ftp://mse.univ-paris1.fr/pub/mse/CES2014/14072.pdf (application/pdf)

Related works:
Working Paper: Holdout threats of the union during wage bargaining (2014)
Working Paper: Holdout threats of the union during wage bargaining (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:14072

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