A Study of Chinese Wage Formation Mechanism Underpinned by Collective Bargaining from the Perspective of Game Theory

Collective bargaining based wage formation,an inherent part of the market economy,helps to normalize labor market,guarantee the healthy flow of labors,protect their rights,enhance economic efficiency of enterprises,mitigate the conflict between employers and workers and do good to the harmonious development of the society.This type of wage formation,however,becomes more a formality than an effective mechanism in the context of Chinese legal system.Wage formation underpinned by collective bargaining is the strategic game where both employers and worker maximize their interests.This paper employs the theory of game to specify and clarify the role of the two participants,discuss the establishment of normative collective bargaining and the perfecting of jointly deciding wage formation mechanism.