Firms' ownership, employees’ altruism, and product market competition

C-Tier
Journal: Economic Modeling
Year: 2022
Volume: 109
Issue: C

Authors (2)

De Chiara, Alessandro (not in RePEc) Manna, Ester (Universitat de Barcelona)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The paper considers profit-maximizing (or private) firms and socially-concerned (or public) firms that compete against each other on both prices and quality. In this setting, we study how product market competition affects firms' decision to hire altruistic or selfish employees. We show that public firms will always hire altruistic employees, whereas private firms will hire selfish employees only if (i) products are sufficiently differentiated and (ii) they compete against public firms. Lastly, we determine which market configuration is associated with the highest quality and the overall customers’ utility. We find that mixed duopoly is more likely to be preferred when product market competition is tougher.

Technical Details

RePEc Handle
repec:eee:ecmode:v:109:y:2022:i:c:s0264999322000207
Journal Field
General
Author Count
2
Added to Database
2026-01-25