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Title:Stakeholders, Bargaining and Strikes PDF Logo
Authors:Shields, Michael A.
Price, Stephen Wheatley
Issue Date:2001
Series/Report no.:IZA Discussion paper series 395
Abstract: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.
Subjects:Bargaining
public sector
stakeholders
strikes
labour relations
JEL:C78
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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