This paper presents a logic-based bargaining solution based on Zhang and Zhang’s framework. It is shown that if the demand sets of players are logically closed, the solution satisfies a fixed-point property, which says that the outcome of bargaining is the result of mutual belief revision. The result is interesting not only because it presents a desirable logical property of bargaining solution...

This paper investigates the efficiency of incomplete contracts if the investors have heterogenous preferences implying heterogenous bargaining behavior, and if these preferences are private information. In the hold-up problem, incomplete contracts cause the proceeds of the investments to be shared by bargaining. Fair-minded individuals reject positive but unfair offers even if this causes a bar...

The semireactive bargaining set, a solution for cooperative games, is introduced. This solution is in general a subsolution of the bargaining set and a supersolution of the reactive bargaining set. However, on various classes of transferable utility games the semireactive and the reactive bargaining set coincide. The semireactive prebargaining set on TU games can be axiomatized by one-person ra...

We compare Gamson’s Law, a popular empirical model of legislative bargaining, with two non-cooperative bargaining models in three player divide the dollar games in which no player has enough votes to form a winning coalition on their own. Both of the game theoretic models better organize the comparative static data resulting from changes in nominal bargaining power than does Gamson’s Law. We al...

This paper studies how different unionisation structures affect firm productivity, firm performance, and consumer welfare in a monopolistic competition model with heterogeneous firms and free entry. While centralised bargaining induces tougher selection among heterogeneous producers and thus increases average productivity, firm-level bargaining allows less productive entrants to remain in the m...

This paper reexamines the game-theoretic bargaining theory from logic and Artificial Intelligence perspectives. We present an axiomatic characterization of the logical solutions to bargaining problems. A bargaining situation is described in propositional logic with numerical representation of bargainers’ preferences. A solution to the n-person bargaining problems is proposed based on the maxmin...

This paper aims at answering the question: How does a typically European bargaining system |with collective bargaining, extension mechanisms and national minimum wage |coexist with low unemployment rate and high wage °exibility? A unique data set on workers, ̄rms and collective bargaining contracts in the Portuguese economy is used to analyze the determinants of both the bargained wage and the ...

This paper shows that the Rubinstein alternating offers model can be modified to provide a Pareto superior outcome in the context of the right-to-manage union-firm bargaining. Two examples of bargaining protocols that yield a superior outcome are provided. In the first example, the union and the firm engage in a game in which the order of play is determined as part of the bargaining. We show th...

Most literature on the hold–up problem assumes that ex post bargaining outcomes are insensitive to prior investment costs. However, many bargaining procedures admit multiple equilibria and hence allow investment costs to affect bargaining outcomes. On the other hand, multiplicity of equilibria leaves scope for coordination failure. We report on three experiments in which unilateral investment i...

Bargained Wages, Wage Drift and the Design of the Wage Setting System This paper aims at answering the question: How does a typically 'European' bargaining system with collective bargaining, extension mechanisms and national minimum wage coexist with low unemployment rate and high wage flexibility? A unique data set on workers, firms and collective bargaining contracts in the Portuguese economy...