The capacity investment by a new firm into an established market is explored in a repeated price game. If the entrant expects collusion to prevail upon entry, it may not practice "judo economics" but instead choose to install enough capacity to serve the entire market. This occurs when collusion...

I propose how to model memory loss of knowledge.

Two recent articles, Legros & Matthews (1993) and Vislie (1994), show that in a non-cooperative production game with stricly complementary (non-observable) inputs, interpretd as effort levels, there exists a linear budget-balancing sharing rule that implements the efficient effort vector in Nash...