Camacho, Fernando T.; Menezes, Flavio M. - In: Annals of Public and Cooperative Economics 80 (2009) 3, pp. 451-468
This paper examines a two-period model of an investment decision in a network industry characterized by demand uncertainty, economies of scale and sunk costs. In the absence of regulation we identify the market conditions under which a monopolist decides to invest early as well as the underlying...