WAGE BARGAINING IN INDUSTRIES WITH MARKET POWER

We develop a game-theoretic version of the right-to-manage model of fi rm-level bargaining where strategic interactions among firms ale expli citly recognized. Our main nim is to investigate how equilibrium wages and employment react to changes in various labor and product market v ariables. We show that our comparative statics results hinge crucially on the strategic nature of the game, which in turn is determined by t he relative bargaining power of unions and managers.