All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Ritesh Jain and Srinivasan Murali
''Labour search with endogenous outside option''
( 2022, Vol. 42 No.2 )
We incorporate the extended version of Nash bargaining proposed by Vartiainen (2007) in a standard labour search and matching model to endogenously determine the outside option of workers along with their wages. We find that the optimal outside option of a worker under this framework is zero and this equilibrium maximizes social welfare when the economy is constrained efficient.
Keywords: Search and Matching, Bargaining theory, Endogenous disagreement
JEL: C7 - Game Theory and Bargaining Theory
J2 - Demand and Supply of Labor: General
Manuscript Received : Nov 30 2021 Manuscript Accepted : Jun 30 2022

  This abstract has been downloaded 75 times                The Full PDF of this paper has been downloaded 155791 times