International Journal of Management, Accounting and Economics (Apr 2018)

Unilateral Decisions to Hire Managers in Markets with Capitalist and Labor-Managed Firms

  • Kazuhiro Ohnishi

Journal volume & issue
Vol. 5, no. 4
pp. 190 – 196

Abstract

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This paper examines the equilibrium outcomes of firms’ decision games to hire managers when there is a capitalist firm competing against a labor-managed firm. The paper shows that if only the capitalist firm hires a manager, then the equilibrium coincides with the solution when neither firm hires a manager. In addition, the paper shows that if only the labor-managed firm hires a manager, then at equilibrium the capitalist firm’s output and the market price are lower than when neither firm hires a manager.

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