Wage negotiations in baseball can fit the bilateral monopoly situation when a star player negotiates with an owner. Explain how collective bargaining would be used in wage negotiations and the role of player strikes


Collective bargaining asks the player and the owner to submit a wage. The mediator then seeks a compromise (although in baseball, the mediator simply chooses the player or the owner wage). Strikes give credibility to player demands. If strikes were disallowed, owners would be less likely to agree to mediation.

Economics

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Economics

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Economics

Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky, and therefore carry a higher cost than not retiring. By using all available information as they act to achieve their goals,

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Economics