ARE NASH BARGAINING-WAGE-AGREEMENTS UNIQUE - AN INVESTIGATION INTO BARGAINING SETS FOR FIRM-UNION NEGOTIATIONS

The shapes of the bargaining sets for firm-union negotiations are rigo rously analyzed in two cases, according to whether bargaining is over wages alone (with employment set according to the labour demand schedu le) or over both wages and employment. When bargaining concerns wages only the bargaining set becomes a one-dimensional curve, and so the st andard theory of the Nash bargaining solution does not apply. Therefor e existence and uniqueness conditions are proved directly. The Kalai-S morodinsky solution is also analysed, and results are illustrated usin g a constant elasticity example.