Lifetime Employment and a Sequential Choice in a Mixed Duopoly Market with a Joint-Stock Firm

This paper examines a three-stage game model in which a jointstock private firm and a stateowned public firm can sequentially offer lifetime employment before competing in quantities. The game runs as follows. First, the jointstock private firm decides whether to offer lifetime employment. Second, the stateowned public firm decides whether to offer lifetime employment. Third, both firms choose their outputs simultaneously and independently. The paper demonstrates that there is an equilibrium solution where only the jointstock private firm offers lifetime employment.