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AA00260492-19880002-0067.pdf
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Download
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| Title |
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A MODEL OF BARGAINING OVER WAGES AND EMPLOYMENT
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TAKESHIMA, Masao
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タケシマ, マサオ
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Takasaki City University of Economics
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Keio Economic Society, Keio University
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1988
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Keio economic studies
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25
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2
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1988
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| Start page |
67
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76
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| Abstract |
In this paper, we consider the problem of bargaining over wages and employment between a trade union and a firm. We extend the model developed by McDonald and Solow (1981) by introducing the element of incomplete information into their model. By means of comparative static analysis, it is shown that the way the agents form expectations about general price level affect importantly the fluctuations of wages and employment determined as the bargaining solution.
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