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Louis Pape (CREST): "Bargaining Power and the Impact of Mergers on Workers"
Firms and Markets Seminar (Brainstorming Session)
To model the impact of a merger on new workers, one needs to understand the determinants of bargaining power. Yet, little is known about bargaining power and how to model it. Economists inevitably treat it as exogenous in theoretical and structural work. Building on insights from auction theory, I will provide a tentative strategy to treat bargaining power endogenously and model the impact of a merger on a worker.