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Lifetime employment and reaction functions of socially concerned firms under quantity competition

Ohnishi, Kazuhiro (2021): Lifetime employment and reaction functions of socially concerned firms under quantity competition.

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Abstract

This paper considers a Cournot oligopoly model with a concave demand function where socially concerned firms can offer lifetime employment as a strategic commitment device. Each socially concerned firm maximizes its own profit plus a share of consumer surplus. The paper presents the reaction functions of socially concerned firms in the Cournot oligopoly model.

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