Endogenous Leadership in a Labor-Managed Duopoly

This paper examines a quantity-setting model in which two labor-managed firms compete against each other. The paper considers the following situation. Each labor-managed firm must choose output either in period one or in period two. If the labor-managed firms decide to choose output in the same period, a simultaneously move game occurs, whereas if the labor-managed firms decide to choose output in different periods, a sequential move game arises. The paper demonstrates that there is no equilibrium where the labor-managed firms choose output in the same period.