INDIVIDUAL AND COLLECTIVE WAGE BARGAINING

Wage negotiation is modeled as an oceanic game. The employer and union s (if any) are atomic players, interacting with an 'ocean' of infinite simal individual, unorganized workers. All workers are equally product ive inside the firm, but may differ in their outside opportunities. Th e 'worth' of a coalition is its achievable surplus, and the Shapley va lue of the c - f game thereby defined provides a plausible, equitable wage settlement. Several different levels of unionization are investig ated. It is noteworthy that this approach does not introduce specific bargaining procedures; instead (like the core) it builds on cooperativ e possibilities present in the economic situation itself.