Showing papers by "Barry Nalebuff published in 1996"
TL;DR: In this article, the authors analyzed a voting model in which a democratic monopoly labor union rationally shrinks towards zero over time and characterized the wage-employment path as a function of the time horizon and the discount rate.
Abstract: We analyze a voting model in which a democratic monopoly labor union rationally shrinks towards zero over time. In our model, preferences are not single-peaked so that this shrinkage may occur in spite of objections by the median voter. We characterize the wage-employment path as a function of the time horizon and the discount rate. We show that the employment path is independent both of the labor demand curve and of the workers’utility functions.