Claim Missing Document
Check
Articles

Found 1 Documents
Search
Journal : ICMSA

BARGAINING GAME AND EQUITY SHARING SYSTEM IN EMPLOYMENT PROBLEM Anton Abdulbasah Kamil
Proceedings of ICMSA Vol 1, No 1 (2005): ICMSA 2005
Publisher : Proceedings of ICMSA

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (4761.691 KB)

Abstract

Profit sharing has been proposed as a solution to underemploymentresulting from collective bargaining, but the empirical results areambiguous and the theoretical basis for this claim is weak. This papershows equity sharing can, in theory, solve the principle shortcomings ofprofit sharing. First, equity sharing can resolve both underemployment andover employment. Second, the results do not depend on assuming thatinsiders and the firm are prevented from bargaining over employmentlevel. Third the system does not require government intervention sinceboth sides can benefit from adopting equity sharing.Keywords: Bargaining game, profit sharing model, equity sharing.