Striking for a bargain between two completely informed agents: comment
Article Abstract:
The article of Raquel Fernandez and Jacob Glazer (1991) is a significant addition to the body of literature on strikes. They were able to widen the understanding of strikes by showing that these may happen in a simple bargaining context with complete and symmetric information. Moreover, they demonstrated that their wage-bargaining model has a significant multiplicity of subgame-perfect equilibria. One problem with their study, however, is that one of their efficient subgame-perfect equilibria is not properly stated. The maximum-wage contract only applies when the firm's discount factor is more than that of the union.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
The geometry of risk aversion: a further comment
Article Abstract:
Errors made by G. Hawawini and L. Sun in their geometric analysis of a simple portfolio model are pointed out along with the flaws evident in the general approach used by both economists. Unless modified,the approach of Hawawini and Sun does not allow derivation of the result that optimal risky investment is inversely related to risk if the utility function is quadratic. The failure of the diagrammatic analysis to add to the intuitive understanding of the model also makes the approach of Hawawini and Sun inappropriate on a priori grounds.
Publication Name: Journal of Economics and Business
Subject: Economics
ISSN: 0148-6195
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Further Off Centre
Article Abstract:
There may be a share-out of Oldham Estate Company's property assets between Harry Hyams and the Co-operative Insurance Society (CIS). Construction group George Wimpey has made an outright sale and option for the rest of its stake in Oldham to CIS. Both Hyams and CIS would get tax benefits from the deal.
Publication Name: Economist
Subject: Economics
ISSN: 0013-0613
Year: 1984
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Hiring and firing optimally in a large corporation. Job displacement. Employee job termination strategies
- Abstracts: Interactions between domestic and foreign investment. Contests with investment. The investment charter
- Abstracts: Rationality and the 'price is right.' On risk, rationality and the predictive ability of European short-term adjusted yield spreads