Atal, Vidya; Bar, Talia; Gordon, Sidartha - Department of Economics, Sciences économiques - 2013
requires a commitment for a period of uncertain duration, restricting the firm in subsequent periods. Capacity constraints … create a “fear of commitment” — some positive return projects are not adopted. In the sequential move dynamic game, the … informed. We study the e§ects of competition on the fear of commitment, and compare the jointly optimal adoption decision to …