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The Strategic Choice of Contractual Policies

Author

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  • Alessandro Bonatti

    (Università "Federico II", Napoli)

Abstract

This paper is devoted at analyzing the strategic choice of intra-firm contractual policies in an oligopoly framework. It derives conditions under which a cooperative bargaining process between firms’ owners and employees characterizes a dominant strategy equilibrium of the game. It then extends the model to consider a different specification of the two parties’ outside options and the implications of the equilibrium allocation on social welfare and collusion possibilities.

Suggested Citation

  • Alessandro Bonatti, 2003. "The Strategic Choice of Contractual Policies," Rivista di Politica Economica, SIPI Spa, vol. 93(6), pages 167-190, November-.
    • Handle: RePEc:rpo:ripoec:v:93:y:2003:i:6:p:167-190
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    More about this item

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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