Working Paper No. 692

Immediate Agreement in Interdependent Bilateral Bargaining

Published: January 25, 2007Pages: 27Keywords: Bilateral Oligopoly; Intermediate Goods; Bargaining; Market Network; Trade LinkJEL-codes: C70; D20; D40; L10; L40

Immediate Agreement in Interdependent Bilateral Bargaining Jonas Björnerstedt and Johan Stennek


This note provides sufficient conditions for immediate agreement in an extensive form model of interdependent bilateral bargaining. The model is suggested by Björnerstedt and Stennek (2006) as a work horse for studying bilateral oligopoly. The key feature of this model is that the firms are represented by separate agents in all negotiations in which they are involved. There is immediate agreement in equilibrium, essentially if production is strictly convex or if the agents use Markov strategies.

 

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

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Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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