NASH BARGAINING WITH DOWNWARD RIGID WAGES

Authors
CABRALES A HOPENHAYN H
Citation
A. Cabrales et H. Hopenhayn, NASH BARGAINING WITH DOWNWARD RIGID WAGES, Economics letters, 57(2), 1997, pp. 213-218
Citations number
6
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
57
Issue
2
Year of publication
1997
Pages
213 - 218
Database
ISI
SICI code
0165-1765(1997)57:2<213:NBWDRW>2.0.ZU;2-1
Abstract
We study the effect of downward wage rigidity in a dynamic model when wages are negotiated according to Nash bargaining. Downward rigidity c auses a decrease in the worker's expected utility. For the firms the e ffect is ambiguous. (C) 1997 Elsevier Science S.A.