On the impact of quotas and decision rules in collective bargaining

Journal article


Publication Details

Author(s): Feicht R, Grimm V, Rau H, Stephan G
Journal: European Economic Review
Publication year: 2017
Title of series: mimeo
Journal issue: 100
Pages range: 175-192
ISSN: 0014-2921


Abstract


We conduct a novel type of multi-person one-shot game that reflects important aspects of collective bargaining. In all treatments a proposer has to divide a pie among herself and two groups of three recipients each. She cannot discriminate within, but across groups. A committee with representatives from one or both groups takes acceptance decisions. In a 2 × 2 design we vary (i) representation in the decision committee (one vs. both groups) and (ii) the decision rule (unanimity vs. majority voting). We find that (i) representation of a group in the committee is crucial for receiving a significant share, (ii) proposals are balanced only if both groups have veto power, (iii) negotiations often fail if the decision environment gives insufficient guidance on what an appropriate proposal is, and (iv) non-binding communication substantially reduces rejection rates and proposer shares.


FAU Authors / FAU Editors

Feicht, Robert
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Grimm, Veronika Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Rau, Holger Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Stephan, Gesine Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Empirische Mikroökonomie (Stiftungslehrstuhl)


How to cite

APA:
Feicht, R., Grimm, V., Rau, H., & Stephan, G. (2017). On the impact of quotas and decision rules in collective bargaining. European Economic Review, 100, 175-192. https://dx.doi.org/10.1016/j.euroecorev.2017.08.004

MLA:
Feicht, Robert, et al. "On the impact of quotas and decision rules in collective bargaining." European Economic Review 100 (2017): 175-192.

BibTeX: 

Last updated on 2018-21-09 at 11:23