Capacity Choice in the Mixed duopoly with Product Differentiation

This note shows that when products are complements in the mixed duopoly market, both public and private firms choose excess capacity. This contrasts with substitute case, where public firm strategically chooses under-capacity while private firm keeps holding excess capacity.

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Year of publication:	2006-09-11
Authors:	Ogawa, Hikaru
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 12.2006, 8, p. 1-6
Publisher:	AccessEcon
Subject:	capacity choice

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Extent:	application/pdf
Type of publication:	Article
Classification:	L1 - Market Structure, Firm Strategy, and Market Performance ; L2 - Firm Objectives, Organization, and Behavior
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010835715