All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Shinjiro Miyazawa
 
''Innovative Interaction in Mixed Market: An Effect of Agency Problem in State-Owned Firm''
( 2008, Vol. 12 No.12 )
 
 
I investigate an innovative interaction before a market competition in a mixed duopoly, where a state-owned firm and a private firm compete with each other. I find that although it reduces the effort level of the state-owned firm, an agency problem can improve the expected social welfare in some cases. I also find that setting the minimum wage level higher, which has an effect to lower the responsibility of bureaucratic managers, can be desirable from the viewpoint of expected social welfare in some cases.
 
 
Keywords: Limited Liability
JEL: L3 - Nonprofit Organizations and Public Enterprise: General
 
Manuscript Received : Mar 21 2008 Manuscript Accepted : Mar 21 2008

  This abstract has been downloaded 439 times                The Full PDF of this paper has been downloaded 87722 times