de Frutos, María-Ángeles; Fabra, Natalia - In: International Journal of Industrial Organization 29 (2011) 4, pp. 399-411
We analyze the role of demand uncertainty in markets of fixed size, in which firms take long-run capacity decisions prior to competing in prices. We characterize the set of subgame perfect Nash equilibria under various assumptions regarding the nature and timing of demand uncertainty. In order...