A domestic power faces an enemy and commits terrorist atrocities to increase the likelihood of victory. A foreign patron can grant aid to the power but prefers fewer or no atrocities. The domestic power responds by acquiescing in the creation of uncontrollable paramilitaries that commit even...

This paper provides strategic foundations for the insight that the bargaining power of employees depends on the firm’s labour turnover costs. The analysis shows how these costs determine the firm’s degree of substitutability between two sets of wage negotiations: (i) those the firm conducts...

The paper analyses a situation in which negotiations take place between a party consisting of a single decision-maker and a party consisting of a group of two decision-makers. The latter, in setting its proposal to the opponent party, may act cooperatively or non-cooperatively within itself. The...