The purpose of this paper is to analyze bargaining between a firm and a finite set of workers. In particular employment choice and the payoffs in equilibrium are studied. In the model, the firm first selects the workers it wants to hire. The selected workers then decide whether they want to...

In an analysis of the formation of unions within a single firm, this paper addresses conditions under which encompassing unions form. It is shown that a production function satisfying decreasing marginal productivity leads to the formation of encompassing unions. This result holds for different...