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 the behaviors of a profit-maximizing private firm and a socialwelfare- maximizing public firm in a mixed market model with a lifetime employment contract as a strategic commitment. The paper then shows that there exists an equilibrium in which the private firm enters into a...

This paper analyses the subgame perfect Nash equilibrium of a two-stage price-setting duopoly. The demand functions are classified into four cases in terms of the goods' relevance and strategic relevance between two firms. All four cases are correlated with two opposite prior commitments that...

This paper investigates a price-setting mixed model involving a private firm and a public firm to reassess the welfare effect of partial privatization. First, the government chooses the level of privatization to maximize social welfare. Second, observing the level of privatization, the firms...

This paper considers lifetime employment contracts asa strategic commitment and examines the respectiveequilibrium outcomes of the two cases of a quantity-setting duopoly game with substitute goods and a quantity-setting duopoly game with complementary goods. First, in the quantity-setting game...

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...

This paper considers a model in which a profit-maximizing firm and a labor-managed income-per-worker-maximizing firm are allowed to offer lifetime employment as a strategic commitment. First, both firms simultaneously and independently decide whether to offer lifetime employment. If a firm...