International Journal of Management, Accounting and Economics
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Volume 5, No. 1, Janaury 2018 Pages: 1 - 9
Lifetime Employment and Mixed Cournot Duopoly with State-Owned and Joint-Stock Firms
This paper examines a mixed duopoly model in which a state-owned firm competes with a joint-stock firm. The following two stages are considered. In the first stage, each firm can simultaneously and independently decide whether or not to offer lifetime employment as a strategic commitment. In the second stage, each firm simultaneously and independently chooses its actual output. The paper shows that there are two equilibrium solutions in the model.
Joint-stock firm, lifetime employment, mixed duopoly, state-owned firm
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