Journal article
Excess capacity: a note
Keio economic studies, Vol.40(1), pp.75-83
01/01/2003
Abstract
In a two period model of strategic entry deterrence where the incumbent firm moves before the entrant by installing capacity for production, Dixit (1980) argued that in a (perfect) equilibrium excess capacity would not be observed, contradicting Spence's (1977) result on the same issue. In this note, we show that Dixit's result may not always remain true when we allow for demand uncertainty. Reprinted by permission of Keio Economic Society
Details
- Title: Subtitle
- Excess capacity: a note
- Creators
- Sougata Poddar
- Resource Type
- Journal article
- Publication Details
- Keio economic studies, Vol.40(1), pp.75-83
- ISSN
- 0022-9709
- Language
- English
- Date published
- 01/01/2003
- Academic Unit
- Economics
- Record Identifier
- 9984963446202771
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