Paik, Tae-Young; Sen, Pradyot K. - In: Management Science 41 (1995) 8, pp. 1404-1414
when the two inputs are substitutes, the optimal solution entails a marginal capital rationing. But when the two inputs are … complements, then either a marginal capital rationing or a marginal leniency could be the optimal response. Our results, therefore …, provide an explanation for why firms may employ a capital rationing for a project that may increase manufacturing complexity …