Journal article
The strategic benefit from advance production
European Journal of Political Economy, Vol.18(3), pp.579-595
09/01/2002
DOI: 10.1016/S0176-2680(02)00107-6
Abstract
Advance production is a means of quantity commitment. Therefore, an oligopolist, unlike a monopolist, may have an incentive to invest in advance production in order to pre-empt opponent(s) even when [i] the investment is technologically more costly than on-spot production, and [ii] the investment does not give the firm Stackelberg leadership in the subsequent marketing stage. We show that
some but
not all firms may engage in advance production, whether the firms are a priori symmetric or not.
Details
- Title: Subtitle
- The strategic benefit from advance production
- Creators
- Sougata Poddar - Duke-NUS Medical SchoolDan Sasaki - University of Exeter
- Resource Type
- Journal article
- Publication Details
- European Journal of Political Economy, Vol.18(3), pp.579-595
- DOI
- 10.1016/S0176-2680(02)00107-6
- ISSN
- 0176-2680
- eISSN
- 1873-5703
- Publisher
- Elsevier B.V
- Number of pages
- 17
- Language
- English
- Date published
- 09/01/2002
- Academic Unit
- Economics
- Record Identifier
- 9984963055302771
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