The analysis in Fudenberg and Tirole (1983) discusses the perfect equilibria of a continuous-time model of the strategic investment decisions of two profitmaximizing private firms in a new market and suggests that there are perfect equilibria where each firm does not invest to its steady-state...

We examine the behaviors of one state-owned welfare-maximizing firm and one labor-managed income-per-worker-maximizing firm in a two-stage mixed market model with capacity investment as a strategic instrument. In the first stage, each firm independently decides whether or not to install...