Sequential Mixed Competition with a Foreign Joint-stock Firm

Kazuhiro Ohnishi
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Kazuhiro Ohnishi: Institute for Basic Economic Science, Japan

International Journal of Social Sciences and Management Studies (IJSSMS), 2014, vol. 1, issue 2, 38-52

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.

Keywords: Wage-rise contract; International mixed duopoly; Domestic state-owned firm; foreign joint-stock firm (search for similar items in EconPapers)
Date: 2014
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