Institutional Background on Employees-Employers Negotiations

Vasileios Bougioukos, Bangor University
Kostas Nikolopoulos, Bangor University
Shanti P. Chakravarty, Bangor University

ABSTRACT
In the modern economic structures of the societies there are examples where fundamental assumptions of rationality are breached and the outcomes cannot be easily explained by the neoclassical economic theory.I have developed a rule-based system that in the hands of an expert would help us identify the space of possible outcomes in bilateral wage negotiations. The System incorporates different variables that are divided in three categories (Economic Indices, Relative Relations and Institutional) and its aim is to capture the probabilities that a Negotiators game (Prisoners�?T Dilemma form) might overcome the impasse. In order to check the validity of the Decision Support System I work upon in the case study of IG Metal trade union-management bargaining that took place in the year 2012. The results are very promising and further research in order to generalize the model should be made. .

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Updated 07/09/2013