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Wage bargaining and quality competition
- Publication Year :
- 2011
-
Abstract
- In a standard model of vertical differentiation, wage is assumed to determine the quality. Wage is also subject to bargaining. Increased bargaining power of the worker in the low quality firm reduces quality differential, and increases price competitiveness. The Opposite happens from a similar change in the high quality firm.
- Subjects :
- Wage bargaining
Quality competition
jel:C7
Subjects
Details
- Database :
- OpenAIRE
- Accession number :
- edsair.od.......645..6baaae637e30fc890415269a4e849e4f