The bargaining system in which the prices of the various factors of production are determined. In most economies there is no one institution in which factor prices are determined. Wage rates in Europe are typically decided by a series of negotiations between employers or groups of employers and trade unions. These negotiations are linked in the sense that what happens in one wage bargain has effects on others, but there is no formal organization of this interaction. Collective bargaining over wages is less common in the US. Negotiations over rents of land and the terms on which capital is made available to firms are similarly decentralized.