Do firms have undue bargaining power over workers? Not according to the Simpsons.* In 2010, the show aired an episode called “Once Upon a Time in Springfield.” Part of the episode is…well, let’s let the episode description tell it:
Meanwhile, a corporate recruiter persuades Homer, Lenny, and Carl to work for a nuclear plant in Capital City, after Mr. Burns announces a moratorium on free doughnuts.
Let’s talk about what’s going on here: in an effort to cut costs, Mr. Burns (the owner of the power plant and wealthiest man in Springfield) stops buying doughnuts. Homer, Lenny, and Carl are pissed, and a corporate headhunter finds them and attempts to recruit them for Mr. Burns’ rival company in Capital City. Eventually, Mr. Burns wins them back by bringing back the doughnuts and doubling the number.
But how could this be if Mr. Burns has superior negotiating power?…
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