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In a model representing the bargaining between a town's single employer and its citizens, a curve illustrates the minimum combinations of wages (y-axis) and environmental quality (x-axis) that citizens will accept before choosing their next best alternative of leaving town. If economic conditions improve significantly in neighboring towns, this curve shifts to a higher position on the graph. What does this shift represent in terms of bargaining leverage?
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In a model representing the bargaining between a town's single employer and its citizens, a curve illustrates the minimum combinations of wages (y-axis) and environmental quality (x-axis) that citizens will accept before choosing their next best alternative of leaving town. If economic conditions improve significantly in neighboring towns, this curve shifts to a higher position on the graph. What does this shift represent in terms of bargaining leverage?
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