According to models of asymmetric information,strikes are more likely when:
A)firm profitability is highly variable and uncertain
B)there is less democracy in the union
C)union leaders have less information regarding firm profitability than the rank and file members
D)none of the above

Question

Quizplus · Accepted Answer

Strikes are more likely when firm profitability is highly variable and uncertain because this uncertainty makes it harder for unions and management to agree on fair wages and working conditions, leading to increased conflict and the likelihood of strikes.

According to Models of Asymmetric Information,strikes Are More Likely When