This paper examines how a firm can strategically choose its capacity to manipulate consumer beliefs about aggregate demand. It looks at a market with social effects where consumers want to do what is popular, to buy what they believe others want to buy. By imposing a capacity constraint and...

This paper estimates country-specific costs and benefits of scaling up key nutrition investments in Nigeria. Building on the methodology established in the global report scaling up nutrition: what will it cost? Authors first estimate the costs and benefits of a nationwide scale up of ten...

This paper studies Bertrand price-setting behavior when firms face capacity constraints (Bertrand–Edgeworth game). This game is known to lack equilibria in pure strategies, while the mixed-strategy equilibria are hard to characterize. We explore families of heuristic rules for individual...

This paper analyses the interplay of capacity utilisation, capacity constraints, demand constraints and price adjustments, employing a unique firm-level data set for Swiss manufacturing firms. Theoretically, capacity constraints limit the ability of firms to expand production in the short run...

Cyclical scheduling, where the time between production periods for each item is constant, offers simplicity and ease of control compared with noncyclical scheduling, where production periods are irregularly spaced. However, when demands are dynamic, flexibility in the spacing of production...

Convex vacancy creation costs shape firms’ responses to trade liberalization. They induce capacity constraints by increasing firms’ cost of production, leading a profit maximizing firm not to fully meet the increased foreign demand. Hence, firms will only serve a few export markets. More...

This paper is about the size of fiscal multipliers and the sources of recovery from the Great Depression. Its contributions begin with a new quarterly data set for the interwar period that allows development of a VAR model of the U. S. economy over the period 1920-41. The quarterly data...

This paper explores a single-item capacitated lot sizing problem with minimum order quantity, which plays the role of minor set-up cost. We work out the necessary and suffcient solvability conditions and apply the general dynamic programming technique to develop an O(T³) exact algorithm that is...

Employing a new dataset of over 9,000 expressed demands for over 700 hedge funds from a secondary market for hedge funds, this paper finds evidence suggesting that hedge fund investors rationally anticipate future hedge fund performance. Both buy and sell indications of interest arrive following...