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Introduction

In: Essays on Wage Bargaining in Dynamic Macroeconomics

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  • Oliver Claas

    (Bielefeld University)

Abstract

This book extends the family of AS–AD models by adding collective bargaining to the labor market. In their standard form, AS–AD models assume competitive markets. However, it is questionable whether labor markets should be treated as competitive markets in economic modeling. Labor markets are subject to substantial legislative regulation in many countries—which by itself might raise doubts about whether these markets can be considered competitive—and they are highly shaped by strategically acting market participants. A prominent example of this strategic interaction is collective bargaining between an employer (or an employers’ association) and a labor union representing its members in negotiations.

Suggested Citation

  • Oliver Claas, 2019. "Introduction," Lecture Notes in Economics and Mathematical Systems, in: Essays on Wage Bargaining in Dynamic Macroeconomics, chapter 0, pages 1-7, Springer.
    • Handle: RePEc:spr:lnechp:978-3-319-97828-4_1
    DOI: 10.1007/978-3-319-97828-4_1
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