Erschienen:
Cambridge, Mass: National Bureau of Economic Research, May 1984
Erschienen in:NBER working paper series ; no. w1359
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w1359
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
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Beschreibung:
This paper presents a wage bargaining model in which the employer and employee are each uncertain about the other's reservation wage. Under specified circumstances, the model's equilibrium is shown to involve unilateral wage setting and inefficient labor turnover. In addition, aggregate demand shocks affect the equilibrium in a way that produces procyclical quits and countercyclical layoffs.These results are obtained without resorting to assumptions of nominal wage rigidity, long-term contracting, or aggregate price misperceptions