Munich Personal RePEc Archive

Comment on: "Centralized Bargaining and Reorganized Work: Are they Compatible?"

Ludsteck, Johannes (2003): Comment on: "Centralized Bargaining and Reorganized Work: Are they Compatible?".

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Assar Lindbeck and Denis Snower investigate the effects of multitasking and teamwork on the viability of centralised bargaining. They emphasize that workers likely have private information concerning their task mix when multitasking plays a significant role in the production process. They try to show in a formal model that only a complex remuneration scheme provides incentives for workers to choose an optimal task mix and suggest that centralized wage setting cannot tackle this complexity. We show that their remuneraton scheme is either not necessary to solve the considered information problem or not implementable.

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