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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.
Volume (Year): 64 (2008)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.mohr.de/fa
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
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
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).
If references are entirely missing, you can add them using this form.