This paper considers a two-stage quantity-setting duopoly model. The paper classifies demand functions into the following four cases in terms of the goods relevance and strategic relevance between both firms: ‘substitute goods and strategic substitutes’, ‘substitute goods and strategic...

This paper examines two three-stage games with a labor-managed income-perworker- maximizing firm and a profit-maximizing firm. In the first stage, the labormanaged firm (resp. the profit-maximizing firm) decides whether to make a commitment to capacity. In the second stage, the other firm...