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Wage-rise contract and endogenous timing in international mixed duopoly

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  • Ohnishi, Kazuhiro

Abstract

This 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.

Suggested Citation

  • Ohnishi, Kazuhiro, 2010. "Wage-rise contract and endogenous timing in international mixed duopoly," Research in Economics, Elsevier, vol. 64(2), pages 121-127, June.
    • Handle: RePEc:eee:reecon:v:64:y:2010:i:2:p:121-127
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