Pacheco de Almeida, Goncalo; Zemsky, Peter - C.E.P.R. Discussion Papers - 2002
We show that time-to-build, which creates a lag between the decision to invest and production, is an important element of industry structure. We study a multi-period investment game where there is demand uncertainty. Allowing for time-to-build alters, non-monotonically, the classic trade-off...