Time Dominance Efficiency Analysis

Building on the stochastic dominance framework, time dominance efficiency analysis provides similar rules for a partial ordering of temporal prospects. Time dominance does not require any quantitative information about temporal preferences for screening decision alternatives according to their net present values. A binary time dominance proposition extends recent sufficient conditions and adds necessity. The paper's main contribution is the development of set time dominance. By eliminating binary undominated projects which no one would choose, set time dominance minimizes time efficient sets without imposing further preference assumptions.     

WAGE BARGAINING, HOLDOUT, AND INFLATION

In many countries it is customary that production continuesunder the terms of the old contract during wage negotiations(holdout), unless a work stoppage is initiated This paper analysesa model where the workers deliberately work less efficientlyduring a holdout, while the firm reduces bonus payments If aholdout is more costly to the firm than to the workers, thewage bargaining will result in a nominal wage increase. Themodel implies a Phillips curve that consists of two verticalparts, one with high inflation and low unemployment and onewith low inflation and high unemployment.