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Decentralized union-oligopoly bargaining when wages signal strength

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  • Wei Ding

Abstract

This paper analyzes decentralized wage bargaining in a unionized oligopoly industry. The novel features of the proposed model are that firms are subject to incomplete information concerning their cost and that wages may signal firms’ private information. The potential for signaling exerts an upward shift on the equilibrium wage profile which mitigates the externality that has been shown to weaken unions’ bargaining power in decentralized wage bargaining. Copyright Springer-Verlag Wien 2015

Suggested Citation

  • Wei Ding, 2015. "Decentralized union-oligopoly bargaining when wages signal strength," Journal of Economics, Springer, vol. 114(3), pages 239-254, April.
    • Handle: RePEc:kap:jeczfn:v:114:y:2015:i:3:p:239-254
    DOI: 10.1007/s00712-014-0401-9
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    References listed on IDEAS

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    1. Milgrom, Paul & Roberts, John, 1982. "Limit Pricing and Entry under Incomplete Information: An Equilibrium Analysis," Econometrica, Econometric Society, vol. 50(2), pages 443-459, March.
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    More about this item

    Keywords

    Wage-bargaining; Labor unions; Incomplete information; Signaling; C78; J50; D43;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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