Bërdëllima, A. - In: Economic Theory Bulletin 9 (2021) 1, pp. 143-154
We study a variation of the duopoly model by Kreps and Scheinkman (1983). Firms limited by their capacity of production engage in a two stage game. In the first stage they commit to levels of production not exceeding their capacities which are then made common knowledge. In the second stage...