PALMA, André DE; LERUTH, Luc - In: Annales d'Economie et de Statistique (1989) 15-16, pp. 389-407
We consider the case of a duopoly selling perfect substitutes except for their level of capacity. Firms are playing a two-stage game in which they take capacities as given when they play in prices and anticipate the price outcome when they play in capacities. We analyze the case where consumers...