Spatial Cournot competition and timing of endogenous wage setting

Qiang Wang (), Yuanyuan He () and Qi Chen ()
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Qiang Wang: College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China.
Yuanyuan He: College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China.
Qi Chen: College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China.

Economics Bulletin, 2009, vol. 29, issue 3, 1772-1782

Abstract: This paper studies the problem of location-quantity choice in a duopoly in which the wage paid by each firm is set by the corresponding monopoly union. Compared with the outcome obtained in location-price choice game, we find that the wage setting choice for both unions does not change in our model, they still choose to set wage sequentially. The equilibrium locations are not influenced by the timing of wage setting.

Keywords: endogenous; product; costs; spatial; competition; Cournot; model; location; choice (search for similar items in EconPapers)
JEL-codes: J5 L1 (search for similar items in EconPapers)
Date: 2009-07-26
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Citations: View citations in EconPapers (1)

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