In the asymmetric-information model of strike activity,employers who provide better information about their profitability to their employees

Question

Quizplus · Accepted Answer

Providing better information about their profitability to their employees helps to reduce the asymmetric-information problem between the employer and employees, which should lead to a decrease in the frequency of strikes. Moreover, because employees are better informed, they are likely to have a better understanding of the employer's financial situation and may be more willing to accept longer strikes to secure better compensation. Therefore, there should be a decrease in both frequency and duration of strikes.

In the Asymmetric-Information Model of Strike Activity,employers Who Provide Better