The aim of this study is to investigate how network effects affect the quality and price decisions of firms in a vertically differentiated market. As network effects increase, high-quality producers tend to raise quality while low-quality producers lower it. The degree of product differentiation...

Because the interests of the manager and the organization are not necessarily coincident, the principal-agent problem arises in the process of recruitment. The standard of employment and the motive in the manager's mind may influence the result of recruitment. The present paper analyzes a game...