Boyer, Marcel; Lasserre, Pierre; Moreaux, Michel - Institut d'Économie Industrielle (IDEI), Toulouse … - 2010
We model investments in capacity in a homogeneous product duopoly facing uncertain demand growth. Capacity building is achieved through adding production units that are durable and lumpy and whose cost is irreversible. There is no exogenous order of moves, no first-mover or second-mover...