We consider a Stackelberg like duopoly in which the strategy space of the firms are price-quantity pairs, meaning that, at this price, a firm is willing to sell at most the supplied quantity. It is shown that, at the equilibrium, the leader will quote a price lower than the price quoted by the...

It is generally expected that profit maximisation leads a firm to choose a more flexible plant the more uncertain its demand function is and/or the more variable is the sequence of quantities to produce. In this paper we make explicit the precise conditions under which this intuitive argument is...

We study the links between observation and flexible technological choices in a duopolistic industry. We show that, in large markets, the strategic value of flexibility is positive and the observation of technological choices promotes the adoption of more flexible technologies whereas in small...