Authors: Kazuhiro OHNISHI
This paper investigates an economy consisting of a state-owned firm and a foreign labor-managed firm. First, the paper considers a Cournot game where only the state-owned firm is allowed to offer lifetime employment as a strategic commitment, and demonstrates that there is a stable equilibrium which is profitable only for the state-owned firm. Next, the paper examines a Cournot game where only the foreign labor-managed firm can offer lifetime employment as a strategic commitment, and shows that there are two stable equilibria. The purpose of this study is to show the value of lifetime employment as a strategic commitment.
Comments: 17 Pages. Published in The UNIVERSITY WITHOUT BORDERS Journal of ECONOMICS & BUSINESS; https://universitywithoutborders.wordpress.com
[v1] 2018-07-01 03:10:04
Unique-IP document downloads: 23 times
Vixra.org is a pre-print repository rather than a journal. Articles hosted may not yet have been verified by peer-review and should be treated as preliminary. In particular, anything that appears to include financial or legal advice or proposed medical treatments should be treated with due caution. Vixra.org will not be responsible for any consequences of actions that result from any form of use of any documents on this website.
Add your own feedback and questions here:
You are equally welcome to be positive or negative about any paper but please be polite. If you are being critical you must mention at least one specific error, otherwise your comment will be deleted as unhelpful.