Business, 30.04.2021 20:30 motorxr714

Consider a non-strategic game between a firm and its union. The value to the firm of getting the workers back to work is $5 million. The union’s agreement value to get back to work is $5 million. The firm can hire nonunion workers, "scabs", so their disagreement value is 1 million and the union members can find temporary employment elsewhere, making the unions disagreement value $2million. The union would have a better bargaining position in the negotiations if :

a. the firm can hire individual workers at a lower wage
b. the union has low wage workers who cannot afford to be off work
c. the union has a strike fund to pay workers during work stoppage actions
d. the firm can easily replace workers with machinery

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Consider a non-strategic game between a firm and its union. The value to the firm of getting the wor...

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