Strategic Commitment and International Mixed Competition with Domestic State-owned and Foreign Labor-managed Firms
AbstractThis paper examines an international mixed model in which a domestic state-owned welfare-maximizing public firm competes against a foreign labor-managed income-per-worker-maximizing private firm. In the first stage, each firm independently decides whether or not to make a commitment to capacity. This capacity may subsequently be increased, but cannot be reduced. Hence, the firm's capacity cost is sunk and changes from a variable cost to a fixed cost. In the second stage, each firm independently chooses its actual output. The paper shows the equilibrium of the international mixed model.
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Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.
Volume (Year): 64 (2008)
Issue (Month): 4 (December)
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Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
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- Kazuhiro Ohnishi, 2009. "Capacity Investment and Mixed Duopoly with State-Owned and Labor-Managed Firms," Annals of Economics and Finance, Society for AEF, vol. 10(1), pages 49-64, May.
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