ALTERNATIVE TRADE UNION OBJECTIVE FUNCTIONS IN THE THEORY OF WAGE BARGAINING

Abstract

The paper concerns the appropriate specification of the t rade union objective function for a unionized labor market. Particular attentionis given to the expected effect of changes in membership size and theoptimum w age. A summary of the comparative static properties of a number of different obj ective functions is given and, with the exception of membership changes, there a re no clear differences. Thepaper also comments on the implications of simultan eous changing membership levels and demand changes. It is argued that the implic ations of such changes depend on the type of objective function. Copyright 1986 by Blackwell Publishers Ltd and The Victoria University of Manchester