WAGE-RISE CONTRACT AND LABOUR-MANAGED COURNOT OLIGOPOLY WITH COMPLEMENTARY GOODS (p.29-39) ![[Fichier PDF]](images/pdf.png) |
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| by |
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| Kazuhiro Ohnishi, Institute for Basic Economic Science, Japan |
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| Keywords : Cournot competition, Labour-managed oligopoly, Wage-rise contract, Complementary goods |
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| JEL classification : C72, D43, L31 |
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| Abstract |
| This paper considers a quantity-setting oligopoly model with complementary goods where labour-managed firms are allowed to offer wage-rise contracts as a strategic commitment. The following two stages are considered. In the first stage, each firm independently decides whether or not to adopt a wage-rise contract as a strategic commitment device. In the second stage, each firm independently chooses and sells its actual output. The paper analyses the equilibrium of the labour-managed oligopoly model. |
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