Distributed optimal control for continuous-time nonaffine nonlinear interconnected systems

2021 ◽  
pp. 1-15
Author(s):  
Behzad Farzanegan ◽  
Amir Abolfazl Suratgar ◽  
Mohammad Bagher Menhaj ◽  
Mohsen Zamani
Keyword(s):  
Optimal Control ◽  
Continuous Time ◽  
Interconnected Systems ◽  
Distributed Optimal Control

scholarly journals Wage bargaining as an optimal control problem: a dynamic version of the efficient bargaining model

2021 ◽  
Author(s):  
Marco Guerrazzi
Keyword(s):  
Optimal Control ◽  
Continuous Time ◽  
Bargaining Power ◽  
Wage Bargaining ◽  
Bargaining Model ◽  
Speed Of Convergence ◽  
Wage Setting ◽  
Dynamic Version ◽  
Efficient Bargaining ◽  
Over Time

AbstractIn this paper, I develop a dynamic version of the efficient bargaining model grounded on optimal control in which a firm and a union bargain over the wage in a continuous-time environment under the supervision of an infinitely lived mediator. Overturning the findings achieved by means of a companion right-to-manage framework, I demonstrate that when employment is assumed to adjust itself with some attrition in the direction of the contract curve implied by the preferences of the two bargainers, increases in the bargaining power of the firm (union) accelerate (delay) the speed of convergence towards the stationary solution. In addition, confirming the reversal of the results obtained when employment moves over time towards the firm’s labour demand, I show that the dynamic negotiation of wages tends to penalize unionized workers and favour the firm with respect to the bargaining outcomes retrieved with a similar static wage-setting model.

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