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Rebellion against Reason? A Study of Expressive Choice and Strikes

Author

Listed:
  • Christa N. Brunnschweiler

    (Department of Economics, Norwegian University of Science and Technology)

  • Colin Jennings
  • Ian A. MacKenzie
Abstract
We challenge the conventional view that strikes are caused by asymmetric information regarding firm profitability. We build an expressive model of strikes where punishing unfairness provides the expressive benefit of voting for a strike. The model predicts that larger union size increases wage offers and strike incidence. Also, although standard asymmetric information still counts, it is the employer who is not fully informed about the union's emotionality, thereby contributing to strikes. An empirical test using UK data supports the predictions. Larger union size is linked to more strikes and other industrial actions, even when controlling for standard asymmetric information.

Suggested Citation

  • Christa N. Brunnschweiler & Colin Jennings & Ian A. MacKenzie, 2012. "Rebellion against Reason? A Study of Expressive Choice and Strikes," Working Paper Series 13012, Department of Economics, Norwegian University of Science and Technology.
    • Handle: RePEc:nst:samfok:13012
    as

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    References listed on IDEAS

    as
    1. Hamlin, Alan & Jennings, Colin, 2011. "Expressive Political Behaviour: Foundations, Scope and Implications," British Journal of Political Science, Cambridge University Press, vol. 41(3), pages 645-670, July.
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    3. Glazer, Amihai, 1992. "An Expressive Voting Theory of Strikes," Economic Inquiry, Western Economic Association International, vol. 30(4), pages 733-741, October.
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    5. Andrew Gelman & Nate Silver & Aaron Edlin, 2012. "What Is The Probability Your Vote Will Make A Difference?," Economic Inquiry, Western Economic Association International, vol. 50(2), pages 321-326, April.
    6. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    7. Fearon, James D., 1995. "Rationalist explanations for war," International Organization, Cambridge University Press, vol. 49(3), pages 379-414, July.
    8. John T. Addison & Claus Schnabel (ed.), 2003. "International Handbook of Trade Unions," Books, Edward Elgar Publishing, number 2705.
    9. John Godard, 1992. "Strikes as Collective Voice: A Behavioral Analysis of Strike Activity," ILR Review, Cornell University, ILR School, vol. 46(1), pages 161-175, October.
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    11. Andrew Gelman & Nate Silver & Aaron Edlin, 2009. "What is the probability your vote will make a difference?," NBER Working Papers 15220, National Bureau of Economic Research, Inc.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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