Fanti, Luciano and Gori, Luca (2011): The codetermined firm in a Cournot duopoly: a stability analysis.
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We study the stability issue in a Cournot duopoly with codetermined firms. We show that when both firms codetermine employment together with decentralised employees’ representatives, a rise in wages acts as an economic de-stabiliser (stabiliser) when the wage is fairly low (high), while under profit maximisation a rise in wages always stabilises the market equilibrium. Moreover, increasing the union’s bargaining power has a de-stabilising effect, except when the wage is low and the firm’s power is already high.
|Item Type:||MPRA Paper|
|Original Title:||The codetermined firm in a Cournot duopoly: a stability analysis|
|English Title:||The codetermined firm in a Cournot duopoly: a stability analysis|
|Keywords:||Bifurcation; Codetermination; Cournot; Duopoly; Employment|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium
|Depositing User:||Luca Gori|
|Date Deposited:||16. Oct 2011 16:38|
|Last Modified:||16. Feb 2013 06:54|
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