This paper investigates an economy consisting of a state-owned firm and a foreign labor-managed firm. First, the paper considers a Cournot game where only the state-owned firm is allowed to offer lifetime employment as a strategic commitment, and demonstrates that there is a stable equilibrium which is profitable only for the state-owned firm. Next, the paper examines a Cournot game where only the foreign labor-managed firm can offer lifetime employment as a strategic commitment, and shows that there are two stable equilibria. The purpose of this study is to show the value of lifetime employment as a strategic commitment.

This paper aims at demonstrating the importance of infrastructures and geopolitical factors for the development of Balkan economies. The transition from the economy of central planning, as developed in the countries of Eastern Europe, to market economy essentially resulted in the replacement of economic and social structures dominant in these countries in the period 1945-1989. This transition was noticeably different from one country to another, despite the existence of some common features; such differences being determined by the particular character of these countries; their traditions; their infrastructures or their geopolitical position. Respective infrastructures also had to readjust to the new features of market economy, as, after all, it was the necessity of competitiveness itself that led these countries to develop infrastructures. In this framework, the development of infrastructures in the Balkans was an important feature in the period of their transition to market economy. Infrastructures are fundamental for the economic development of the Balkans; however, geopolitical factors also contributed to the development and growth of Balkan economies in direct relevance with the attitudes of potential investors in the respective markets.

This paper aims at demonstrating the importance of infrastructures and geopolitical factors for the development of Balkan economies. The transition from the economy of central planning, as developed in the countries of Eastern Europe, to market economy essentially resulted in the replacement of economic and social structures dominant in these countries in the period 1945-1989. This transition was noticeably different from one country to another, despite the existence of some common features; such differences being determined by the particular character of these countries; their traditions; their infrastructures or their geopolitical position. Respective infrastructures also had to readjust to the new features of market economy, as, after all, it was the necessity of competitiveness itself that led these countries to develop infrastructures. In this framework, the development of infrastructures in the Balkans was an important feature in the period of their transition to market economy. Infrastructures are fundamental for the economic development of the Balkans; however, geopolitical factors also contributed to the development and growth of Balkan economies in direct relevance with the attitudes of potential investors in the respective markets.