Employers Prefer Decentralized Bargaining Structures Because It Causes Local Unions

question 107

Short Answer

Employers prefer decentralized bargaining structures because it causes local unions to have to compete with each other for jobs which drives down their wages. This is known as ______________________________.

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Definitions:

Nash Equilibrium

A concept in game theory where players reach an outcome from which no player can benefit by unilaterally changing their strategy.

Cooperative Strategy

A collaborative approach undertaken by businesses or organizations to achieve mutual benefits or objectives through sharing resources, capabilities, or markets.

Simultaneous Game

A game in game theory where all players make their decisions and moves at the same time without knowledge of the other players' choices.

Payoff

The outcome or reward received as a result of a particular action or decision, often used in the context of games or economic scenarios.