Ohnishi, Kazuhiro - In: Annals of Economics and Finance 12 (2011) 1, pp. 109-119
-maximizing private firm can use inventory investment as a strategic device. It is then demonstrated that the equilibrium in the second … period coincides with the Stackelberg solution where the private firm is the leader, and at equilibrium, both social welfare … and the private firm¡¯s profit are higher than in the game without inventory. …