Bargaining and Economic Allocations

This set of flashcards covers key vocabulary and concepts related to economic bargaining, coercive and voluntary allocations, and the dynamics of worker negotiations.

Coercive Allocations

Allocations where one party can impose terms on another, often maximizing their own gain at the other's expense.

Voluntary Allocations

Allocations made by mutual agreement where both parties benefit and maximize surplus.

Pareto Efficiency Curve

A curve representing allocations where no party can be made better off without making another party worse off.

Reservation Indifference Curve

A graphical representation of different allocations that provide the same level of satisfaction for a participant.

Economic Rents

Excess returns that are obtained when the income or profit received exceeds what is necessary to keep resources in their current use.

Minimum Wage

The lowest allowable payment per hour that employers can pay their employees.

Strikes

Collective actions by workers aiming to improve labor conditions or wages through refusal to work.

Indifference Curve

A graph showing different combinations of goods that provide the same utility to a consumer.

Reservation Option

The minimum acceptable outcome or deal that a participant is willing to accept in a negotiation.

Surplus

The amount of goods or resources left over after all needs have been met, particularly in bargaining scenarios.