This paper examines a subgame perfect equilibrium when one of two duopolists executes a lifetime-employment-contract policy, which is a strategic commitment that generates kinks in the reaction curve, by using a two-stage quantity-setting model. The purpose of the paper is to show concretely in...

This paper considers lifetime employment contracts as a strategic commitment and discusses the respective equilibrium outcomes of the two cases of a price-setting game with substitute goods and a price-setting game with complementary goods. As a result, it is shown that in each case, the...

This paper examines international mixed competition, where one domestic social-surplus-maximizing public firm and one foreign profit-maximizing private firm can adopt a wage-rise contract as a strategic commitment. The paper considers the following three stages. In the first stage, the domestic...