Stakeholders, Bargaining and Strikes
Published By: IZA on eSS | Published Date: August, 10 , 2010In this paper they 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. The 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. The results lend support to the
tendency towards decentralisation of pay bargaining in the public sector in Europe.[IZA DP No. 395]
Author(s): Paola Manzini, Clara Ponsatí | Posted on: Aug 10, 2010 | Views(1250) | Download (769)