We examine cost-reducing investment in vertically-related oligopolies, where firms may be vertically integrated or …. (ii) Vertical integration increases own investment and decreases competitor investment. (iii) Firms may integrate …

In a continuous-time framework we study the technology and investment choice problem of a continuous co … flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved … determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule …