---
_id: '30940'
abstract:
- lang: eng
  text: "We analyse the two-dimensional Nash bargaining solution (NBS) by deploying\r\nthe
    standard labour market negotiations model of McDonald and Solow (1981).\r\nWe
    show that the two-dimensional bargaining problem can be decomposed into two\r\none-dimensional
    problems, such that the two solutions together replicate the solution\r\nof the
    two-dimensional problem if the NBS is applied.  The axiom of\r\nIndependence of
    Irrelevant Alternatives is shown to be crucial for this type\r\nof decomposability.
    \ This result has significant implications for actual\r\nnegotiations because
    it allows for the decomposition of a multi-dimensional bargaining\r\nproblem into
    one-dimensional problems---and thus helps to facilitate real-world\r\nnegotiations."
article_type: original
author:
- first_name: Claus-Jochen
  full_name: Haake, Claus-Jochen
  id: '20801'
  last_name: Haake
- first_name: Thorsten
  full_name: Upmann, Thorsten
  last_name: Upmann
- first_name: Papatya
  full_name: Duman, Papatya
  id: '72752'
  last_name: Duman
citation:
  ama: 'Haake C-J, Upmann T, Duman P. Wage Bargaining and Employment Revisited: Separability
    and Efficiency in Collective Bargaining. <i>Scandinavian Journal of Economics</i>.
    2022;125(2):403-440. doi:<a href="https://doi.org/10.1111/sjoe.12518">https://doi.org/10.1111/sjoe.12518</a>'
  apa: 'Haake, C.-J., Upmann, T., &#38; Duman, P. (2022). Wage Bargaining and Employment
    Revisited: Separability and Efficiency in Collective Bargaining. <i>Scandinavian
    Journal of Economics</i>, <i>125</i>(2), 403–440. <a href="https://doi.org/10.1111/sjoe.12518">https://doi.org/10.1111/sjoe.12518</a>'
  bibtex: '@article{Haake_Upmann_Duman_2022, title={Wage Bargaining and Employment
    Revisited: Separability and Efficiency in Collective Bargaining}, volume={125},
    DOI={<a href="https://doi.org/10.1111/sjoe.12518">https://doi.org/10.1111/sjoe.12518</a>},
    number={2}, journal={Scandinavian Journal of Economics}, publisher={Wiley}, author={Haake,
    Claus-Jochen and Upmann, Thorsten and Duman, Papatya}, year={2022}, pages={403–440}
    }'
  chicago: 'Haake, Claus-Jochen, Thorsten Upmann, and Papatya Duman. “Wage Bargaining
    and Employment Revisited: Separability and Efficiency in Collective Bargaining.”
    <i>Scandinavian Journal of Economics</i> 125, no. 2 (2022): 403–40. <a href="https://doi.org/10.1111/sjoe.12518">https://doi.org/10.1111/sjoe.12518</a>.'
  ieee: 'C.-J. Haake, T. Upmann, and P. Duman, “Wage Bargaining and Employment Revisited:
    Separability and Efficiency in Collective Bargaining,” <i>Scandinavian Journal
    of Economics</i>, vol. 125, no. 2, pp. 403–440, 2022, doi: <a href="https://doi.org/10.1111/sjoe.12518">https://doi.org/10.1111/sjoe.12518</a>.'
  mla: 'Haake, Claus-Jochen, et al. “Wage Bargaining and Employment Revisited: Separability
    and Efficiency in Collective Bargaining.” <i>Scandinavian Journal of Economics</i>,
    vol. 125, no. 2, Wiley, 2022, pp. 403–40, doi:<a href="https://doi.org/10.1111/sjoe.12518">https://doi.org/10.1111/sjoe.12518</a>.'
  short: C.-J. Haake, T. Upmann, P. Duman, Scandinavian Journal of Economics 125 (2022)
    403–440.
date_created: 2022-04-22T14:10:44Z
date_updated: 2023-06-08T16:42:31Z
ddc:
- '330'
department:
- _id: '205'
- _id: '475'
doi: https://doi.org/10.1111/sjoe.12518
funded_apc: '1'
has_accepted_license: '1'
intvolume: '       125'
issue: '2'
jel:
- J52
- J41
- C78
keyword:
- Labour market negotiations
- efficient bargains
- Nash bargaining solution
- sequential bargaining
- restricted bargaining games
language:
- iso: eng
main_file_link:
- url: https://onlinelibrary.wiley.com/doi/10.1111/sjoe.12518
page: 403-440
project:
- _id: '7'
  grant_number: '160364472'
  name: 'SFB 901 - A3: SFB 901 - Subproject A3'
- _id: '2'
  name: 'SFB 901 - A: SFB 901 - Project Area A'
- _id: '1'
  grant_number: '160364472'
  name: 'SFB 901: SFB 901'
publication: Scandinavian Journal of Economics
publication_identifier:
  eissn:
  - 0347-0520
publication_status: published
publisher: Wiley
quality_controlled: '1'
status: public
title: 'Wage Bargaining and Employment Revisited: Separability and Efficiency in Collective
  Bargaining'
type: journal_article
user_id: '20801'
volume: 125
year: '2022'
...