Arbeitspapier

A Sequential Entry Model with Strategic Use of Excess Capacity

A model of sequential entry with Leontief costs is studied in which demand is iso-elastic. Some or all firms may hold excess capacity in the perfect equilibrium to the entry game. Firms with a first mover advantage trade off the positioning value of a large investment in capacity, leading to a large market share, against the possible costs of bearing the burden of entry deterrence through holding excess capacity in equilibrium.

Language
Englisch

Bibliographic citation
Series: Queen's Economics Department Working Paper ; No. 835

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Barham, Brad
Ware, Roger
Event
Veröffentlichung
(who)
Queen's University, Department of Economics
(where)
Kingston (Ontario)
(when)
1991

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Barham, Brad
  • Ware, Roger
  • Queen's University, Department of Economics

Time of origin

  • 1991

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