Strategic Wage Bargaining with Destructive Power : The Role of Commitment
Paola Manzini
Abstract
Paola Manzini
Abstract
We build a simple allernating-offers bargaining model in which one of the players call commit to damage the "pie" that they are bargaining over. In the unique equilibrium partition his share does not vary monotonically with the discount factor.
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We build a simple allernating-offers bargaining model in which one of the players call commit to damage the "pie" that they are bargaining over. In the unique equilibrium partition his share does not vary monotonically with the discount factor.
Key concepts: Commit, Bargaining power, Wage bargaining, Bargaining problem, Wage, Economics, Microeconomics, Partition (number theory)