JAFAREY, Saqib; KASKARELIS, Yannis; MIAOULI, Natasha - Center for Operations Research and Econometrics (CORE), … - 1995
This paper uses a dynamic monopoly union model to analyze the joint determination of wages, employment and investment in the absence of binding contracts. The union maximizes a utilitarian utility function while the firm faces a neoclassical investment problem with adjustment costs....