Stochastic bargaining models

Two stochastic models of labor-management negotiations are proposed and solved explicity. The cost function considered is such that either a penalty is incurred as long as negotiations take place, or an infinite penalty is incurred if a settlement is not reached before a fixed time. Furthermore, the cost function takes the risk sensitivity of the optimizers into account.This research was supported by the Natural Sciences and Engineering Research Council of Canada and by the fund FCAR of Québec.