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Zagreb International Review of Economics & Business, Vol. 13 No. 1, 2010.

Original scientific paper

Inventories in a Labour-Managed Economy

Kazuhiro Ohnishi ; Institute for Basic Economic Science, Osaka,Japan

Full text: english pdf 291 Kb

page 41-49

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Abstract

This paper considers a two-period model in which two labour-managed firms can use inventory investment as a strategic device. In the first period, each firm simultaneously and independently chooses how much it sells in the current market and the level of inventory it holds for the second-period market. The paper shows the reaction curves in the model with inventories. The paper finds that inventories may be used by labour-managed firms to facilitate tacit collusion.

Keywords

labour-managed firm; inventory investment; two-period model

Hrčak ID:

78714

URI

https://hrcak.srce.hr/78714

Publication date:

1.5.2010.

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