Chapter 7. Bargaining in Labor Exchange

  1. Joyce P. Jacobsen and
  2. Gilbert L. Skillman

Published Online: 14 JAN 2008

DOI: 10.1002/9780470755587.ch8

Labor Markets and Employment Relationships: A Comprehensive Approach

Labor Markets and Employment Relationships: A Comprehensive Approach

How to Cite

Jacobsen, J. P. and Skillman, G. L. (eds) (2004) Bargaining in Labor Exchange, in Labor Markets and Employment Relationships: A Comprehensive Approach, Blackwell Publishing Ltd, Malden, MA, USA. doi: 10.1002/9780470755587.ch8

Publication History

  1. Published Online: 14 JAN 2008
  2. Published Print: 1 JAN 2004

ISBN Information

Print ISBN: 9780631208365

Online ISBN: 9780470755587

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Keywords:

  • bilateral market power;
  • bilateral monopoly;
  • negotiation costs;
  • bargaining relationship;
  • bargaining outcomes

Summary

This chapter contains section titled:

  • EXCHANGE COSTS AND BILATERAL MARKET POWER Matching costs and bilateral monopoly

  • Strategic implications of negotiation costs

  • THE IMPACT OF MATCHING AND NEGOTIATION COSTS ON BARGAINING OUTCOMES The theoretical problem

  • The basic framework

  • The simple “voice” model with discounting and no exit options

  • Voluntary exit with discounting

  • Involuntary termination of the bargaining relationship

  • OTHER BARGAINING SCENARIOS

  • CONCLUSION

  • DERIVATION OF THE RUBINSTEIN BARGAINING EQUILIBRIUM WITH DISCOUNTING AND NO EXIT OPTIONS Statement of the problem

  • Derivation of equilibrium payoffs for the game with discounting and no exit options