Quarterly Journal of Economics Vol. 99 No. 3 1984
Labor Union Objectives and Collective Bargaining
Abstract
We consider a model oflabor union behavior in which workers make decisions about wages and employment by simple majority rule. We show that under general conditions such a union has a well-behaved objective function, different from those previously postulated in the literature. We then show that the union's majority preferences generally lack a von Neumann-Morgenstern utility representation and thus cannot be inserted into traditional bargaining models. We then develop and characterize the solutions to a new bargaining model that is consistent with the structure of union preferences. Several comparative-statics results are presented.
- DOI
- 10.2307/1885964
- Volume
- 99
- Issue
- 3
- Pages
- 547
- Sources
- openalex crossref