Affordable Access

Mixed duopoly with wage-rise contract as strategic commitment



This paper examines a quantity-setting mixed market model in which both a social-welfare-maximizing public firm and a profit-maximizing private firm can adopt wage-rise contracts as a strategic commitment. The paper then shows that the equilibrium coincides with the Stackelberg solution where the public firm is the leader.

There are no comments yet on this publication. Be the first to share your thoughts.