Socially concerned duopolies with lifetime employment as a strategic commitment

Ohnishi, Kazuhiro (2022): Socially concerned duopolies with lifetime employment as a strategic commitment. Forthcoming in: Asian Journal of Economics and Finance

Abstract

This paper considers a two-stage game model with a nonlinear concave demand function where two socially concerned firms compete with each other. Each socially concerned firm maximizes its own profit plus a fraction of consumer surplus. In the first stage, each socially concerned firm decides simultaneously and independently whether to offer lifetime employment as a strategic commitment device. At the beginning of the second stage, each socially concerned firm knows the rival’s choice in the first stage, In the second stage, each socially concerned firm chooses simultaneously and independently an actual output level. The paper discusses the equilibrium outcomes of the Cournot duopoly model.

• Item Type: MPRA Paper
• Language: English
• Keywords: Concave demand function; Cournot duopoly model; Lifetime employment; Socially concerned firms
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games; D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General

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