Labor negotiations simplified: Breakthrough method streamlines multi-issue bargaining.
The study looks at how labor market negotiations can be simplified using a method called the Nash bargaining solution. By breaking down a two-dimensional bargaining problem into two one-dimensional problems, the researchers found that the solutions can be combined to solve the original problem. This method works well when using the Nash bargaining solution, but not with other solution concepts. This finding suggests that breaking down complex negotiations into simpler parts can help make labor market negotiations easier and more effective.