Stakeholders, Bargaining and Strikes

41 Pages Posted: 19 Nov 2001

See all articles by Paola Manzini

Paola Manzini

University of St. Andrews - School of Economics and Finance; Institute for the Study of Labor (IZA)

Clara Ponsati

Autonomous University of Barcelona - Department of Economics and Economic History

Date Written: November 2001

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 decentralization of pay bargaining in the public sector in Europe.

Keywords: Bargaining, Public Sector, Stakeholders, Strikes, Labor Relations

JEL Classification: C78

Suggested Citation

Manzini, Paola and Ponsati, Clara, Stakeholders, Bargaining and Strikes (November 2001). IZA Discussion Paper No. 395. Available at SSRN: https://ssrn.com/abstract=290902

Paola Manzini (Contact Author)

University of St. Andrews - School of Economics and Finance ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

HOME PAGE: http://www.st-andrews.ac.uk/~pm210/

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Clara Ponsati

Autonomous University of Barcelona - Department of Economics and Economic History ( email )

Edifici B - Campus Bellaterra
Barcelona, 08193
Spain

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