Employment Protection and Product Market Competition |
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| Authors: | Sebastian G Kessing |
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| Institution: | WZB Social Science Research Center, D-10785 Berlin, Germany |
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| Abstract: | A firm facing employment protection will defend its market position more fiercely than a rival firm operating without such restrictions. However, ex ante such firms may be more reluctant to expand. For the benchmark case of contest competition, the defensive effect dominates. A firm facing employment protection has a stronger average market position. |
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| Keywords: | Employment protection contests all-pay auction |
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