Thanks to Amitabh Chandra, Paul Frijters, Scott Stern, Justin Wolfers, two anonymous referees, and co-editor for valuable comments on earlier drafts. Jenny Chesters, Rachael Meager, Susanne Schmidt and Elena Varganova provided outstanding research assistance.
Bargaining Over Labour: Do Patients Have Any Power?*
Article first published online: 17 NOV 2011
© 2011 The Economic Society of Australia
Volume 88, Issue 281, pages 182–194, June 2012
How to Cite
GANS, J. S. and LEIGH, A. (2012), Bargaining Over Labour: Do Patients Have Any Power?. Economic Record, 88: 182–194. doi: 10.1111/j.1475-4932.2011.00776.x
- Issue published online: 7 JUN 2012
- Article first published online: 17 NOV 2011
We provide a new method of identifying the level of relative bargaining power in bilateral negotiations using exogenous variation in the degree of conflict between parties. Using daily births data, we study negotiations over birth timing. In doing so, we exploit the fact that fewer children are born on the ‘inauspicious’ dates of February 29 and April 1; most likely, we argue, reflecting parental preferences. When these inauspicious dates abut a weekend, this creates a potential conflict between avoiding the inauspicious date (the parents’ likely preference), and avoiding the weekend (the doctor’s likely preference). Using daily births data, we estimate how often this conflict is resolved in favour of the physician. We show how this provides an estimate of how bargaining power is distributed between patients and physicians.