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Strategic Investment and Excess Capacity : A Study of the Taiwanese Flour Industry

Ma, Tay-Cheng - 2005

The Taiwanese flour industry's capacity utilization rate has maintained an extremely low level of 40% for more than 20 years. This article sets up a two-stage game model and uses the strategic effect of the firm's capital investment on its rivals' outputs to explain the nature of this excess...

Persistent link: https://www.econbiz.de/10014027620