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Sequential Mixed Competition with a Foreign Joint-stock Firm

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  • Kazuhiro Ohnishi

    (Institute for Basic Economic Science, Japan)

Abstract

This paper studies the behaviour of a domestic state-owned firm and a foreign joint-stock firm in an international mixed duopoly model. Each firm is allowed to offer a wage-rise contract as a strategic commitment. The paper considers the following three stages. In the first stage, the domestic state-owned firm decides whether to offer the wage-rise contract. In the second stage, the foreign joint-stock firm decides whether to offer the wage-rise contract. In the third stage, both firms simultaneously and non-cooperatively choose their actual outputs. The paper presents the equilibrium of the international mixed duopoly model.

Suggested Citation

  • Kazuhiro Ohnishi, 2014. "Sequential Mixed Competition with a Foreign Joint-stock Firm," International Journal of Social Sciences and Management Studies (IJSSMS), The Economics and Social Development Organization (TESDO), vol. 1(2), pages 38-52, June.
    • Handle: RePEc:ijr:ijssms:v:1:y:2014:i:2:p:38-52
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    References listed on IDEAS

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    Cited by:

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