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A Three‐Stage International Mixed Duopoly With A Wage‐Rise Contract As A Strategic Commitment

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  • KAZUHIRO OHNISHI

Abstract

This paper examines international mixed competition, where one domestic social‐surplus‐maximizing public firm and one foreign profit‐maximizing private firm can adopt a wage‐rise contract as a strategic commitment. The paper considers the following three stages. In the first stage, the domestic public firm can offer the wage‐rise contract. In the second stage, the foreign private firm can offer the wage‐rise contract. In the third stage, both firms simultaneously and independently choose and sell their actual outputs. The equilibrium of the international mixed duopoly model is discussed.

Suggested Citation

  • Kazuhiro Ohnishi, 2010. "A Three‐Stage International Mixed Duopoly With A Wage‐Rise Contract As A Strategic Commitment," Manchester School, University of Manchester, vol. 78(4), pages 279-289, July.
    • Handle: RePEc:bla:manchs:v:78:y:2010:i:4:p:279-289
    DOI: 10.1111/j.1467-9957.2009.02143.x
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    Cited by:

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    3. Rupayan Pal, 2010. "How much should you own? Cross-ownership and privatization," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2010-015, Indira Gandhi Institute of Development Research, Mumbai, India.

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