A Mixed Duopoly with a Lifetime Employment Contract as a Strategic Commitment
Jahrgang 62 (2006) / Heft 1, S. 108-123 (16)
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This paper examines the behaviors of a profit-maximizing private firm and a social-welfare-maximizing public firm in a mixed market model with a lifetime employment contract as a strategic commitment. The paper then shows that there exists an equilibrium in which the private firm enters into a lifetime employment contract with its employees while the public firm does not.