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Short-Run Production Uncertainty and the Theory of the Firm : The Impact of Union-Firm Bargaining

Author

Listed:
  • Bughin, Jacques

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

The paper analyses the consequence of introducing (decentralized) union-firm bargaining in the theory of the firm under uncertainty. Contrary to earlier beliefs that short-run output does not change with additive uncertainty, it is shown that risk preference may matter when union-firm bargaining is introduced Comparative statics between risk-averse (or risk-loving) and unions are revealed to depend on the respective power of the fixation of both wage and employment.

Suggested Citation

  • Bughin, Jacques, 1991. "Short-Run Production Uncertainty and the Theory of the Firm : The Impact of Union-Firm Bargaining," LIDAM Discussion Papers IRES 1991017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:1991017
    as

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