Labour sharing in a duopoly model

ABSTRACT

This paper constructed a duopoly model of labour sharing, analysed the equilibrium results of four scenarios, and made a comparative analysis. The results show that neither a labour gap nor a labour surplus is conducive to increased profits. Enterprises are positively inclined towards labour sharing if it would result in higher profits – a prerequisite for sharing. The cost of labour sharing affects the equilibrium results. Hence, the cost should be controlled within a reasonable range. Labour sharing has different effects on social welfare in different scenarios.

KEYWORDS:

• Labour sharing
• duopoly
• labour cost
• social welfare

JEL CLASSIFICATION:

• D23
• L13
• L33

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The research is supported by Fundamental Research Funds for the Central Universities (Grant number: N2123006).