Assertion: local wage bargaining | /r/HasProperty | modelled
Facets:
value: according to this idea
type: OTHER
Source sentences:
text: According to this idea, local wage bargaining would be modelled as $\max_{w}\Omega(w)$ given that $L=L(w)$ is the solution to $\max_w\Pi(w,L)$; and central wage bargaining would be modelled as $\max_w\Omega(w)$ holding $L$ fixed, and the firms chooses $L$ so that it is the solution to $\max_L\Pi(w^*,L)$, where $w^*$ is the centrally determined wage.