Boyer, Marcel; Lasserre, Pierre; Moreaux, Michel - Centre Interuniversitaire de Recherche en Analyse des … - 2007
regarding future actions. While capacity units are costly, indivisible, durable, and large relative to market size, early entry … both firms hold capacity, tacit collusion, taking the form of postponed capacity investment, may occur as a MPE. Volatility … tacit collusion equilibria is favored by higher demand volatility, faster market growth, as well as by lower discount rate …