Non-cooperative Bargaining and Union Formation

We study a union formation decision problem when workers consist of two groups distinguished by different productivities. Workers may form either a joint union or two separate unions. The whole decision process is modelled as an extensive-form bargaining game. Workers form a joint union when the siz...

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Veröffentlicht in:The Review of economic studies 1989, Vol.56 (1), p.59-76
1. Verfasser: Jun, Byoung Heon
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description We study a union formation decision problem when workers consist of two groups distinguished by different productivities. Workers may form either a joint union or two separate unions. The whole decision process is modelled as an extensive-form bargaining game. Workers form a joint union when the sizes or productivities of the groups are similar. In the first case, there is a wage differential which is more (less) than proportional to the productivity difference if the size of the more productive is smaller (larger) than that of the less productive. In the second case, there is no wage differential.
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identifier ISSN: 0034-6527
ispartof The Review of economic studies, 1989, Vol.56 (1), p.59-76
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source Business Source Complete; Periodicals Index Online; JSTOR Archive Collection A-Z Listing
subjects Bargaining
Bargaining power
Collective bargaining
Economic models
Labor unionization
Labor unions
Productivity
Revenue
Trade unions
Union certification
Wage differential
Wages
title Non-cooperative Bargaining and Union Formation
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