5 More Lab Labor: Bargaining, Search, Markets, and Discrimination
In this section we summarize the contributions of laboratory experiments to aspects of labor economics other than the principal-agent problem or labor supply issues. These are, in turn, bargaining, strikes and arbitration; search; models of labor market equilibrium; and the study of gender, race and discrimination in labor markets.
5.1 Bargaining, strikes and arbitration
The bilateral bargaining problem—how a surplus is divided between two players—has a long and rich history in economic theory, dating back at least to Nash’s (1950, 1953) contributions to co-operative and non-cooperative bargaining, and important subsequent developments such as Rubinstein (1982).79 Experimental ...