Ohnishi, Kazuhiro - In: Annals of Economics and Finance 7 (2006) 2, pp. 271-281
The analysis in Fudenberg and Tirole (1983) discusses the perfect equilibria of a continuous-time model of the strategic investment decisions of two profitmaximizing private firms in a new market and suggests that there are perfect equilibria where each firm does not invest to its steady-state...