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Stakeholders, Bargaining and Strikes

Author

Listed:
  • Manzini, Paola

    (University of Bristol)

  • Ponsatí, Clara

    (Universitat Autònoma de Barcelona)

Abstract

We study bilateral bargaining problems with interested third parties, the stakeholders that enjoy benefits upon a bilateral agreement. We explore the strategic implications of this third party involvement. Our main finding is that the potential willingness of the stakeholder to make contributions to promote agreement may be the source of severe inefficiency. However, and more surprisingly, for a wide range of parameter values this outcome is better for the stakeholder than if he enters bargaining directly. Our results lend support to the tendency towards decentralisation of pay bargaining in the public sector in Europe.

Suggested Citation

  • Manzini, Paola & Ponsatí, Clara, 2001. "Stakeholders, Bargaining and Strikes," IZA Discussion Papers 395, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp395
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    References listed on IDEAS

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    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
    3. Busch, Lutz-Alexander & Wen, Quan, 1995. "Perfect Equilibria in Negotiation Model," Econometrica, Econometric Society, vol. 63(3), pages 545-565, May.
    4. Ponsati C. & Sakovics, J., 1996. "The war of attrition with incomplete information," Mathematical Social Sciences, Elsevier, vol. 31(1), pages 54-54, February.
    5. Xavier Jarque & Clara Ponsat?Author-Name: Jozsef Sakovics, 2001. "Mediation: Incomplete information bargaining with," UFAE and IAE Working Papers 502.01, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    6. Manzini, Paola & Mariotti, Marco, 2001. "Perfect Equilibria in a Model of Bargaining with Arbitration," Games and Economic Behavior, Elsevier, vol. 37(1), pages 170-195, October.
    7. Haller, Hans & Holden, Steinar, 1990. "A letter to the editor on wage bargaining," Journal of Economic Theory, Elsevier, vol. 52(1), pages 232-236, October.
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    Cited by:

    1. Mark Fey & Kristopher Ramsay, 2009. "Mechanism design goes to war: peaceful outcomes with interdependent and correlated types," Review of Economic Design, Springer;Society for Economic Design, vol. 13(3), pages 233-250, September.
    2. Schettkat, Ronald & Yocarini, Lara, 2001. "Education Driving the Rise in Dutch Female Employment: Explanations for the Increase in Part-time Work and Female Employment in the Netherlands, Contrasted with Germany," IZA Discussion Papers 407, Institute of Labor Economics (IZA).
    3. Manzini, Paola & Ponsati, Clara, 2005. "Stakeholders in bilateral conflict," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 166-180, September.

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    More about this item

    Keywords

    stakeholders; public sector; Bargaining; labour relations; strikes;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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