r/AskEconomics•
HeFlipYa

What is the economic justification for collective bargaining of workers given that cartels for business are illegal?

Is there an economic argument that justifies this? I've often heard it stated that firms are less constrained economically than laborers. A laborer sells all of their labor to one buyer, traditionally, while firms buy labor from many (generally). Is there a specific theory that models this relationship?

Posted Jun 26, 2017, 8:44 PM UTC

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