Consider an N stage serial production line where the processing times of orders may be random. Since the carrying costs increase from stage to stage, the standard production procedure, that is, to determine a total leadtime for the entire order by taking an appropriate percentile of the...

We study product differentiation on a Salop circle when firms relocate incrementally due to bounded rationality. We prove that, under common assumptions on demand, firms relocate only when two or more firms target the same niche. In any other case, there is no incentive for any firm to relocate...