Bargaining Collectively

Joint with: Philip Bond

Many bargaining situations take place between a central agent and a group of individuals acting collectively where (i) the proposals are restricted to treat all the group

members equally, (ii) the decisions of the group are reached through a voting process, and (iii) the vote binds all the members of the group. Examples include debt restructuring negotiations between a troubled company and its bondholders; shareholder votes on executive compensation; and collective bargaining between a firm and union members. We study how the equilibrium payoffs of such bargaining situations depend on the decision rule adopted by the group.

For more information, contact Antonio Merlo.