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| Title: | | Collective bargaining under non-binding contracts  |
| Authors: | | Dobbelaere, Sabien Luttens, Roland Iwan |
| Issue Date: | | 2011 |
| Series/Report no.: | | Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5518 |
| 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. |
| Subjects: | | collective bargaining union firm bargaining power non-binding contract |
| JEL: | | C71 J51 L20 |
| Persistent Identifier of the first edition: | | urn:nbn:de:101:1-201104113917 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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