Bargaining power and equilibrium consumption

  title={Bargaining power and equilibrium consumption},
  author={Hans Gersbach and Hans Haller},
  journal={Social Choice and Welfare},
We examine how a shift of bargaining power within households operating in a competitive market environment affects equilibrium allocation and welfare. If price effects are sufficiently small, then typically an individual benefits from an increase of bargaining power, necessarily to the detriment of others. If price effects are drastic the welfare of all household members moves in the same direction when bargaining power shifts, at the expense (or for the benefit) of outside consumers. Typically… CONTINUE READING

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