Boyer, Marcel; Lasserre, Pierre; Mariotti, Thomas; … - Centre Interuniversitaire de Recherche en Analyse des … - 2001
capacity units are costly, indivisible, durable, and big relative to market size, early entry cannot secure a first …-mover advantage, so that both firms are active beyond some level of market development. Once both firms hold capacity, tacit collusion …-time real-options model of capacity investment. Our methodology allows the evaluation of investment options and exercise rules …