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Collective bargaining under perfect information. The negotiation of national agreements

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  • Carlos Diaz-Moreno
  • Jose Galdon-Sanchez

Abstract

We structurally estimate a perfect information bargaining model of collective negotiations using data on national agreements for Spain. The model is a stochastic model of sequential bargaining in which we allow for the possibility of negotiations ending without agreement, a common feature in the data. Delays in equilibrium are the result of uncertainty about the surplus to be divided among the players and not of information asymmetries. The model fits the data well regardless of the limitations imposed by the parametric specification adopted. Our results show that agents are patient and that the advantage from proposing is large. Copyright Springer-Verlag Berlin/Heidelberg 2005

Suggested Citation

  • Carlos Diaz-Moreno & Jose Galdon-Sanchez, 2005. "Collective bargaining under perfect information. The negotiation of national agreements," Spanish Economic Review, Springer;Spanish Economic Association, vol. 7(2), pages 139-155, June.
    • Handle: RePEc:spr:specre:v:7:y:2005:i:2:p:139-155
    DOI: 10.1007/s10108-004-0095-1
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    Cited by:

    1. Doménech, Rafael & Garcí­a, José Ramón, 2008. "Unemployment, taxation and public expenditure in OECD economies," European Journal of Political Economy, Elsevier, vol. 24(1), pages 202-217, March.

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