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Contract curve or implicit contract: Which will a union choose?
Authors:Walter J Wessels
Institution:(1) North Carolina State University, 27695 Raleigh, NC
Abstract:While much has been written about implicit and efficient (contract curve) contracts, little has been written about which contract a union will choose. This study examines how a democratic union chooses between these contracts. Under most conditions, unions reject an efficient contract and are more likely to choose an implicit contract, but a type of contract new to the economic literature could predominate over either.
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