Bargaining Quote by Frank Knight
“Large scale collective bargaining . . . is merely a seductive name for bilateral monopoly, and means either adjudication of conflicts in terms of power, or deadlock and stoppage, usually injuring outside people more than the immediate parties to the dispute.”
About This Quote
Source Article: Economic Thought, 1921
Collective bargaining is a disguised bilateral monopoly that often leads to deadlock and harms third parties more than the disputing sides.
In simple terms: Bargaining can become a power struggle harming outsiders.
Key Takeaway
Design bargaining processes that protect third‑party interests.
Themes
bargaining
power dynamics
monopoly
deadlock
externalities
Mood
analytical
critical
Type
economic
political
When to use this quote
- Labor negotiations
- policy making
- regulatory oversight
- conflict resolution
Key Concepts
Game theory
industrial relations
economic efficiency
Questions to Reflect On
- What alternatives reduce deadlock?
- How to protect affected third parties?
A Different Perspective
Overemphasis on power can ignore cooperative solutions.
