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Two firms compete on a sales market as well as in hiring labor. The duopolists'sales levels depend on their workforce. There are two each of two typesof workers, mobile and immobile, with differing effort costs. An immobileworker's eort costs are lower when he is employed by the local firm,...
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On an otherwise symmetric oligopoly market with stochastic demands for heterogeneousproducts firms can either hire an …
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