1. Historically when bargaining between labor and management has broken down, the consequences have been costly. Strikes can go on for months, preventing companies from producing output and workers from working. In the National Labor Relations Act (Wagner Act) of 1935 and the Labor-Management Relations Act (Taft-Hartley Act) of 1947, policy makers created constraints within which these potentially devastating failures to bargain would be kept to a minimum. a. How do these acts do this? b. Is this most consistent with Normative Hobbes Theorem or the Normative Coase Theorem? Explain.

1. Historically when bargaining between labor and management has broken down, the consequences have been costly. Strikes can go on for months, preventing companies from producing output and workers from working. In the National Labor Relations Act (Wagner Act) of 1935 and the Labor-Management Relations Act (Taft-Hartley Act) of 1947, policy makers created constraints within which these potentially devastating failures to bargain would be kept to a minimum. a. How do these acts do this? b. Is this most consistent with Normative Hobbes Theorem or the Normative Coase Theorem? Explain.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter19: Labor And Entrepreneurship: The Human Inputs

Section: Chapter Questions

Problem 7DQ

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6. Under certain circumstances, it is possible for unions to better their interests by affecting or altering the union constraint in a direct or indirect manner. Could you recommend a strategy that may work for this goal, based on your microeconomics knowledge? How can unions put your strategy to work? Demonstrate the effect of your strategy in a diagram.
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