Wage-rise contract and endogenous timing in international mixed duopoly
AbstractThis paper examines an endogenous-timing mixed model, where a public firm competes against a foreign private firm. Each firm first chooses the timing for adopting a wage-rise contract as a strategic instrument. The following situation is considered. In the first stage, each firm simultaneously and independently chooses the stage in which it adopts a wage-rise contract, namely either stage 2 or stage 3. In the second stage, the firm choosing stage 2 can adopt the wage-rise contract in this stage. In the third stage, the firm choosing stage 3 can adopt the wage-rise contract in this stage. At the end of the game, each firm simultaneously and independently chooses its output. The paper discusses the equilibrium of the endogenous-timing mixed model.
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Bibliographic InfoArticle provided by Elsevier in its journal Research in Economics.
Volume (Year): 64 (2010)
Issue (Month): 2 (June)
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Web page: http://www.elsevier.com/locate/inca/622941
Wage-rise contract Endogenous timing International mixed duopoly Domestic public firm Foreign private firm;
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