An Application of Computerized Decision Tree Models in Management-Union Bargaining

Published Online:https://doi.org/10.1287/inte.15.2.74

The labor contract bargaining environment poses major challenges to the team bargaining with the union. A computerized decision tree model helped one team to develop reasonable bargaining positions that were acceptable to both management and the union. By graphically describing the gains and risks associated with alternative positions, the model enhanced communication within the team and with management.

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